Rostin Behnam – Chairman of the US Commodity Futures Trading Commission (#CFTC ) has emphasized the need for a clear regulatory framework in the cryptocurrency market. He addressed this issue in a recent podcast interview with the Intercontinental Exchange (ICE).

Rostin Behnam expressed concern about the industry's current ambiguity and potential vulnerability to fraud and manipulation. Behnam stated:

“The market seems to need a certain kind of regulatory framework.”

These comments come as institutional interest in cryptocurrencies is on the rise. At the same time, market participants are also looking for clarity. He noted:

“You can predict that institutional demand is likely to increase if there is a clear regulatory framework.”

Behnam emphasized on participating organizations and individuals. These are the people who demand hedging in the crypto environment.

Does the CFTC consider cryptocurrencies a commodity or a security?

In the past, Behnam has commented extensively on cryptocurrencies. Most notably, he expressed his view that many currencies should be considered commodities. This includes $BTC and $ETH .

However, this view is somewhat inconsistent with the view of Chairman #SEC – Gary Gensler. Gensler believes that the majority of cryptocurrencies should be classified as securities. Therefore, companies need to comply with applicable securities laws. Behnam challenges this view, arguing that about 70% of the cryptocurrency market is a commodity. He called on Congress to enact legislation to provide clearer guidelines on commodity tokens. Thereby strengthening the CFTC's authority in supervising this field.

This is not the first time the CFTC Chairman has joined the debate on cryptocurrency regulation. During a hearing in March 2023, Behnam declared digital assets such as Ethereum and some stablecoins to be commodities. This has become the SEC's challenge. In the SEC's view, cryptocurrencies are securities. This distinction between the two regulatory bodies has long been a controversial issue. It is very likely that this will shape the regulatory landscape of the cryptocurrency industry.

Currently, institutional and individual interest in the cryptocurrency market continues to increase. The requirements for regulatory guidance therefore need to become clearer and more comprehensive.