CFTC Chair Behnam Asserts 70-80% of Crypto Are Non-Securities Read CoinChapter.com on Google News
NAIROBI (CoinChapter.com) — Rostin Behnam, Chairman of the Commodity Futures Trading Commission (CFTC), testified before the Senate Agriculture Committee, claiming that 70-80% of cryptocurrency tokens are non-securities.
This contrasts sharply with SEC Chairman Gary Gensler’s position that most cryptocurrencies are securities, highlighting a growing regulatory divide between the CFTC and the SEC.
BTC and ETH Classified as Commodities
During his testimony, Behnam noted the Illinois court’s classification of Bitcoin (BTC) and Ethereum (ETH) as commodities under the Commodity Exchange Act. This aligns with the CFTC’s perspective and enhances its jurisdiction over these leading digital assets.
“The Illinois court has established that Bitcoin and Ethereum are commodities,” Behnam stated, emphasizing the importance of this classification for regulatory clarity.
Benham’s statement on crypto quickly caught the internet’s attention. Source: Eleanor Terrett
The court’s decision underscores the CFTC’s role in overseeing BTC and ETH, separating these assets from other tokens potentially classified as securities. This clear regulatory framework is vital for market participants seeking certainty in an evolving landscape.
CFTC Chair Calls for Federal Legislation
Behnam’s assertion that 70-80% of tokens are non-securities underscores the need for updated regulatory measures. He argued that current laws are insufficient to protect investors and manage digital asset market risks.
Due to the risks that the unregulated market poses to US investors, Behnam claimed to advocate for new legislative authority for the CFTC and urged Congress to act swiftly.
Furthermore,the official highlighted gaps in regulation for non-security tokens, which represent a significant portion of the market. Without new laws, investor protection remains inadequate, which could lead to increased fraud and instability in financial markets.
Urgent Appeal to Congress
Behnam appealed to Congress to pass legislation enabling the CFTC to regulate non-security digital assets effectively. He warned that without such measures, the public’s interest in digital assets could threaten financial stability.
His testimony also pointed to the challenges the CFTC faces in regulating the digital asset market. Behnam expressed the agency’s readiness to collaborate with other regulatory bodies and stakeholders to develop a comprehensive regulatory framework.
This cooperation aims to enhance investor protection and ensure market integrity.
Behnam’s testimony before the Senate Agriculture Committee marks a pivotal moment in the regulatory debate over digital assets. His call for new legislative authority highlights the urgent need for clarity and oversight in the evolving cryptocurrency market.
Consequently, as the regulatory landscape evolves, the CFTC’s position will shape the future of cryptocurrency regulation in the United States.
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