CFTC Chairman 70% of cryptocurrency products should be classified as commodities

CFTC Chairman 70% of crypto products should be commodities

Author: Jacob Oliver, CryptoSlate; Translation: Song Xue, LianGuai

Rostin Behnam, Chairman of the U.S. Commodity Futures Trading Commission (CFTC), emphasized the need to establish a clear regulatory framework in the booming cryptocurrency market during an interview with Intercontinental Exchange (ICE) podcast on August 14th.

Behnam expressed concerns about the current ambiguity in the industry and the vulnerability to potential fraud and manipulation, stating, “The market seems to need some sort of regulatory framework.”

These comments come at a time when institutional interest in cryptocurrencies is rising, with market participants seeking clarification. “You can predict that if there is a clear regulatory framework, institutional demand may increase,” he pointed out.

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Commodities and Securities

Behnam has previously made extensive comments on the cryptocurrency field, most notably that many currencies, including Bitcoin and Ethereum, should be considered commodities.

However, this position is somewhat inconsistent with the stance of Gary Gensler, Chairman of the U.S. Securities and Exchange Commission (SEC), who has previously mentioned that the majority of cryptocurrencies should be classified as securities and therefore subject to existing securities laws. Behnam challenges this view, believing that about 70% of the cryptocurrency market products should be classified as commodities. He called on Congress to enact legislation to provide clearer guidance for commodity tokens and enhance the CFTC’s oversight of the industry.

This is not the first time the Chairman of the CFTC has weighed in on the cryptocurrency regulatory debate. In a hearing in March 2023, Behnam declared that digital assets such as Ethereum and certain stablecoins are commodities, challenging the broader classification of cryptocurrencies as securities by the SEC. The difference between the two regulatory agencies has long been a contentious issue and may continue to affect the regulatory landscape of the cryptocurrency industry.

Currently, as institutional and individual interest in the cryptocurrency market continues to exist, there is an increasing demand for clearer, more detailed, and comprehensive regulatory guidelines.

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