CFTC Chairman Rostin Behnam has sparked a new cryptocurrency regulation debate, saying many tokens are commodities.
In a recent CNBC Squawk Box interview, Commodity Futures Trading Commission (CFTC) Chairman Rostin Behnam made an important statement regarding cryptocurrency regulation as it relates to the classification of tokens within the space. Contrary to the stance taken by U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler, Behnam claimed that “many tokens constitute commodities under current law.”
Different perspectives on cryptocurrency regulation
The disagreement between Behnam and Gensler on cryptocurrency regulation is noteworthy. Gensler has long advocated that cryptocurrency intermediaries be treated as securities transactions and insisted on registration with the SEC.
The view was opposed by an all-Republican group of lawmakers, who wrote a letter questioning the SEC’s view. The lawmakers believe that the SEC’s approach forces cryptocurrency companies to adopt a regulatory framework that is incompatible with the technology’s fundamental principles and inconsistent with existing securities laws.
In a recent interview, Behnam dispelled rumors of a rift with Gensler. He emphasized the positive working relationship and cited shared values and interests in protecting markets, the U.S. financial ecosystem, and ultimately customers. In Behnam’s view, the challenge is adapting decades-old laws to the rapidly changing landscape of blockchain technology, requiring novel policy and legislative approaches.
Regulatory gaps and congressional intervention
Addressing the need for clear cryptocurrency guidelines, Behnam acknowledged that a regulatory gap exists and asserted that Congress must step in to overcome any hesitation toward legalizing blockchain technology.
He stressed the importance of figuring out how existing laws can adapt to the evolving nature of cryptocurrencies. He further emphasized that as a market regulator, the CFTC has made great strides in areas such as anti-money laundering (AML) laws and know your customer (KYC) practices to combat terrorist financing and illicit activities.
Behnam’s recent comments echo his request to the Senate Banking Committee about a year ago, urging a swift establishment of a regulatory framework for cryptocurrencies. The rationale behind his call for action is to protect investors and mitigate systemic risk in an environment that has changed dramatically since the outbreak of the pandemic.
Despite this evolution, fundamental vulnerabilities remain, as evidenced by the potential for an FTX-like debacle. Notably, Behnam’s advocacy for cryptocurrency regulation extends beyond traditional cryptocurrencies to the decentralized finance (DeFi) space. #监管 #CFTC
