The chairman of the Commodity Futures Trading Commission (CFTC) shared some formal ideas for upcoming regulations on the crypto industry.
In the present time, many crypto assets are playing very important roles against the traditional assets and these things are further resulting in huge regulation requirements under the government agencies’ rules, to provide better safety to the investors. In particular, many crypto assets are operating under a partially centralized nature and few of them are under a fully decentralized system. These things are forcing government agencies to regulate crypto companies perfectly, based on what they did in the past and what they are doing in the present time.
Rostin Behnam, chairman of the Commodity Futures Trading Commission (CFTC), recently appeared in an interview with CNBC’s Squawk Box.
Through the interview, the CFTC chair confirmed that in the upcoming regulation system, US regulators will categorize crypto assets into two categories, to bring regulation more perfectly on the crypto companies under the precise and perfect laws.
According to the CFTC chairman, if assets will be categorized as Securities, they will go under the regulation of the Securities and Exchange Commission (SEC) and the crypto assets which fall under the category of Commodities will fall under the regulation of the CFTC Agency.
“Within this fear of digital assets and the coins which make up thousands of thousands, they are naturally going to be some commodities and securities.”
The CFTC chair noted that it will not be easy for the US regulatory bodies because there are many crypto assets, which fall under the security and also in Commodities.
In particular, Behnam quoted the name of the two biggest market cap coins Bitcoin & Ethereum, and said that these two will fall under the category of Commodities.
“I can say for sure Bitcoin, which is the largest of the coins and has always been the largest regardless of the total market cap of the entire digital asset market capitalization, is a commodity…(..)…Ethereum as well. I have argued this before, my predecessors said it is a commodity.”
Ripple vs SEC case impact
US Securities and Exchange Commission (SEC) agency filed a lawsuit against Ripple firm and claimed that Ripple’s native token XRP is a security.
The present case is going on and this case was filed in December 2020.
Probably such upcoming framework to categorize the crypto assets will help to solve the Ripple vs SEC case dominantly.