Breaking: CFTC Chair Behnam Claims 70-80% Crypto Are Non-Securities 🚨🚨
Rostin Behnam, the Chairman of the CFTC has recently appeared before the Senate Agriculture Committee to discuss the classification of digital assets in the cryptocurrency market. Behnam mentioned that the U.S. Illinois court had recognized Bitcoin (BTC) and Ethereum (ETH) as commodities under the Commodity Exchange Act.
BTC and ETH Classified as Commodities
Behnam in his testimony noted that the Illinois court had ruled that Bitcoin and Ethereum are commodities that are regulated by the CFTC. This classification is in line with the CFTC’s viewpoint and makes a clear distinction between these top digital assets and other tokens that might be classified as securities.
This court affirmation enhances the CFTC’s jurisdiction over BTC and ETH since the two are considered commodities and there is a clear guideline on how they will be regulated.
According to Behnam, “The Illinois court has established that Bitcoin and Ethereum are commodities,” stressing on the legal recognition of this status. This confirmation is crucial for legal certainty, particularly in light of the ongoing discussion about the legal classification of various digital assets in the market.
70-80% of Crypto Are Non-Securities
Addressing the broader digital asset market, Behnam asserted that 70-80% of tokens are non-securities. This statement challenges SEC Chairman Gary Gensler’s previous assertion that most cryptocurrencies are securities. Behnam’s position underscores a significant regulatory divergence between the two agencies responsible for overseeing the financial markets.
While giving his testimony, Behnam pointed out that new legal mandates are required for the CFTC to enforce its control over non-security tokens and to offer adequate protection to the investors.
He pointed out that there are regulatory gaps for these assets that make up the majority of the market capitalization.
