The latest statement passed by the chairman of the United States CFTC is hinting that CFTC also believes that only Bitcoin is a commodity asset.
In the present time, the United States Securities and Exchange Commission (SEC) is the leading regulatory body in the crypto sector. According to SEC chairman Gary Gensler, huge numbers of crypto assets are Securities and only Bitcoin is a commodity asset. The Commodity Futures Trading Commission (CFTC) is another financial regulatory body in the US known to show a significant influence of its authority in the crypto sector.
In the past few months, a Few CFTC officials talked about the need to increase the potential & reach of the CFTC authority in the crypto sector, more likely the SEC agency. At present, SEC is handling the majority of the Crypto related regulatory works because the majority of the crypto assets’ nature is much similar to the Security asset class.
Recently during the crypto event hosted by Princeton University on Wednesday, CFTC chairman Rostin Benham talked about the FTX exchange bankruptcy and future crypto regulation. Rostin suggested that only Bitcoin falls under the commodity class.
Rostin said that FTX talked & spent a huge time with the CFTC agency to allow the exchange to let customers trade with money borrowed directly from the company, rather than through a broker.
Further Rostin talked about a bill, which was introduced in August of this year & also supported by FTX founder Sam Bankman-Fried (SBF).
According to the CFTC chairman, that bill will bring the decision to push the crypto assets under particular regulatory jurisdiction.
“Many digital assets constitute commodities,” he said while testifying to the Senate at the time. “As recognized by the DCCPA, the CFTC’s expertise and experience make it the right regulator for the digital asset commodity market.”
As per reports, in the last few months, there was some kind of disagreement between CFTC & SEC agencies over the power & authority in the crypto sector. But now it seems that CFTC is now much more supportive of the statements passed by the SEC chairman Gary Gensler that the majority of the assets are Securities. According to the CFTC chairman, stablecoins are also much similar to securities.
On the FTX bankruptcy, Rostin said that there were chances to stop the incidents like FTX bankruptcy but limited resources from lawmakers are not allowing the agency to take action.