The head of the United States Commodity Futures Trading Commission (CFTC), Rostin Behnam, claimed that Bitcoin is the only crypto asset that can be considered a commodity during a cryptocurrency event he was invited to at Princeton University. reported Fortune.
Behnam’s comments are in stark contrast to his earlier remarks in October, in which he claimed that Ether (ETH) could also be considered a commodity. The CFTC chief was responding to a question about which crypto assets should be considered commodities and which ones qualify as securities.
The change of heart in the CFTC chief’s comments on ETH comes after heavy scrutiny from US regulators and allegations of corruption, as Republican lawmakers accuse the SEC chairman of coordinating with FTX “to gain regulatory monopoly.” “.
The debate over which cryptocurrencies are considered commodities under the law has been a long one. Bitcoin is unanimously considered unsecured due to its true decentralized nature, while the status of Ether and other cryptocurrencies has been a controversial issue. Ripple is also currently facing a lawsuit from the SEC over an unregistered security sale.
The US financial regulator has found itself in some turbulence after the collapse of the FTX cryptocurrency exchange mainly due to its association with the exchange.
The CFTC was about to be given oversight power through proposed Senate legislation, called the Digital Commodities Consumer Protection Act (DCCPA), while the CFTC chief faced much criticism for the same, but defended the commission’s actions, claiming they don’t have the luxury of waiting.
Behnam said the commission has limited oversight powers and blamed the “matrix of regulators” for being a flawed system. However, he called for better collaboration among the long list of regulatory bodies to craft some formidable rulemaking.
The CFTC chief is scheduled for a congressional hearing on Dec. 1 to discuss the collapse of the now-bankrupt cryptocurrency exchange FTX and the lessons learned from the debacle.
Breaking: 8 Congress Members tried to stop the SEC from inquiring into FTX by questioning the SEC’s authority to inquire about Crypto
5 of those 8 members also received campaign donations from FTX, ranging from $2,900 to $11,600
— Nancy Pelosi Stock Tracker â™Ÿ (@PelosiTracker_) November 25, 2022
Former CEO Sam Bankman-Fried’s close ties to US policymakers and his lobbying efforts to make the CFTC the primary cryptocurrency regulator have been questioned by many in the cryptocurrency community. A recent memo also alleged that 8 US congressmen tried to stop the SEC from investigating FTX.
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