Author: Tom Mitchelhill, CoinTelegraph; Translated by: Tao Zhu, Golden Finance
The head of the U.S. commodities regulator has again argued that Bitcoin and Ethereum — the two largest cryptocurrencies by market value — are commodities and that his agency should regulate them.
Speaking before the U.S. Senate Agriculture, Nutrition, and Forestry Committee on July 9, Commodity Futures Trading Commission Chairman Rostin Behnam said a recent court ruling in Illinois reaffirms that Bitcoin and Ethereum are commodities.
The July 3 ruling is part of a $120 million Ponzi scheme case involving an Oregon man who is accused of fraud. In his order, an Illinois district court judge said both assets qualify as commodities.
Source: Rostin Behnam
It also said Olympus (OHM) and KlimaDAO (KLIMA) also qualify as commodities.
“In its decision, the court reiterated that both Bitcoin and Ethereum are commodities under the Commodity Exchange Act.”
Additionally, Benham cited a 2022 report from the Financial Stability Oversight Council (FSOC) that highlighted gaps in regulation of spot markets for “non-security digital assets” and called on the agency to assume greater regulatory responsibilities for digital commodities.
Benham said continued inaction by other U.S. regulators will not “extinguish public interest in digital assets” but will only create greater risks for financial markets and investors.
"Simply put, our current trajectory is unsustainable. Federal legislation is urgently needed to create a path for a regulatory framework that protects American investors, and potentially the financial system, from future risks," he said.
Behnam says CFTC is ready to enforce cryptocurrency rules
The CFTC chairman outlined five key legislative priorities he believes the agency can introduce to better regulate digital commodities.
These include the agency’s ability to tailor rules to the unique risk profile of cryptocurrencies, a permanent “fee-for-service” funding model, requiring registrants to comply with a “full disclosure regime” regarding their crypto assets, and strengthening the CFTC’s KYC and AML prerogatives.
Finally, he urged the commission to consider developing a “rigorous, balanced framework” to determine whether tokens are considered commodities or securities under existing law and to work to launch a comprehensive education and outreach program about crypto assets in the United States.
“The SEC and CFTC have a long-standing relationship that helps provide strong regulation of the securities and derivatives markets,” Behnam said.
“I am confident that the two agencies will continue to work closely together to ensure a reliable, fair and efficient system for listing and trading digital assets on regulated exchanges.”
