Crypto Regulatory Discord: CFTC and SEC Clash Over Jurisdiction in US.

The US crypto landscape remains in limbo as the ongoing “turf war” over jurisdiction between the CFTC and SEC persists.

With the United States struggling to bring about regulatory clarity for the crypto space, the ongoing discord between two pivotal watchdogs sparks concerns about potential implications.

The head of the Commodities Futures Trading Commission (CFTC), Rostin Behnam, has once again indicated that most crypto assets are considered commodities according to existing laws. He also acknowledged an ongoing “turf war” among regulatory bodies, particularly the Securities and Exchange Commission (SEC) and the CFTC, regarding the jurisdiction to regulate the digital asset industry.

Turf War

During an appearance on CNBC’s “Squawk Box,” the CFTC Chair clarified that “under existing law, many of the tokens constitute commodities,” providing some regulatory clarity on the status of crypto assets in the United States. Highlighting the regulatory complexities faced by the crypto industry, Behnam emphasized the pressing need for legislative action, noting that members of Congress are actively working to understand the regulatory landscape.

While the United States remains a prominent country for cryptocurrencies, alongside Australia and Brazil, the lack of regulatory clarity and consistent enforcement actions against crypto businesses are significant deterrents for enterprises operating in the region

Behnam pointed out the challenge of a “turf war” among various regulatory bodies in the country, specifically between the SEC and the CFTC, regarding which agency should regulate the industry. This ongoing conflict has become a major obstacle in establishing clear regulatory guidelines for digital assets and the broader crypto industry.

The CFTC Chair’s perspective on crypto regulation differs from that of SEC Chair Gary Gensler, who consistently asserts that crypto intermediaries engage in securities transactions and should fall under his agency’s oversight.