Breaking: CFTC Chair Behnam Claims 70-80% Crypto Are Non-Securities

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As a researcher, I find Behnam’s testimony before the Senate Agriculture Committee both intriguing and significant for the future regulation of digital assets in the United States. The Illinois court ruling that BTC and ETH are commodities under the Commodity Exchange Act is an important step towards legal certainty in the crypto market. This classification enhances the CFTC’s jurisdiction over these top digital assets and provides clarity on their regulatory framework.

Rostin Behnam, head of the Commodity Futures Trading Commission (CFTC), recently testified before the Senate Agriculture Committee regarding the categorization of digital assets within the cryptocurrency realm. Notably, he brought up the U.S. Illinois court decision recognizing Bitcoin (BTC) and Ethereum (ETH) as commodities under the Commodity Exchange Act.

He also noted that approximately 70-80% of the cryptocurrency market does not fall under the category of securities, contrasting with SEC Chairman Gary Gensler’s assertion that a majority of cryptocurrencies are indeed securities.

BTC and ETH Classified as Commodities

In his testimony, Behnam stated that according to the Illinois court’s decision, Bitcoin and Ethereum are considered commodities under the jurisdiction of the Commodity Futures Trading Commission (CFTC). This categorization aligns with the CFTC’s perspective, establishing a distinct boundary between these leading digital assets and other tokens potentially classified as securities.

As a crypto investor, I’ve closely followed the recent developments regarding the classification of Bitcoin (BTC) and Ethereum (ETH) as digital commodities. According to Eleanor Terrett’s report for Fox, Behnam, the chairman of the Commodity Futures Trading Commission (CFTC), confirmed this classification in a court ruling in Illinois. He also emphasized that around 70-80% of assets in the crypto market fall under this category as commodities.
— Wu Blockchain (@WuBlockchain) July 10, 2024

The confirmation from this court expands the Commodity Futures Trading Commission’s (CFTC) authority over Bitcoin and Ethereum, as these cryptocurrencies are classified as commodities. A definitive regulatory framework exists for handling them accordingly.

As a legal analyst, I can tell you that, according to Behnam’s perspective, the Illinois court has declared Bitcoin and Ethereum as commodities. This designation is significant because it brings legal clarity to these digital assets during the ongoing debate about the classification of numerous cryptocurrencies in the marketplace.

70-80% of Crypto Are Non-Securities

In relation to the wider digital asset market, I, Behnam, contend that approximately 70-80% of tokens do not fall under the Securities and Exchange Commission (SEC) definition of securities. This contrasts with Chairman Gary Gensler’s stance that most cryptocurrencies are securities. My perspective highlights a substantial regulatory disparity between the two financial market regulators, the SEC included.

During his testimony, Behnam emphasized that it is necessary for the CFTC to implement new regulations in order to effectively regulate non-security tokens and ensure investor safety.

He highlighted the absence of regulatory oversight for a significant portion of the market value, which is comprised of these assets. (Behman made this observation.)

Due to the potential dangers this unregulated market presents to American investors, I’ve repeatedly advocated for fresh legislative powers for the Commodity Futures Trading Commission (CFTC) in public.

CFTC Chair Calls for Federal Legislation

As a researcher studying the digital asset market, I’ve observed firsthand its remarkable transformation and experienced periods of extreme volatility. Regrettably, these transformative phases have also been marked by numerous scandals. Given this context, I share the concerns raised by the CFTC chair regarding the inadequacy of existing legislation to shield investors from fraud and other potential risks. In light of these challenges, I strongly advocate for swift legislative action by Congress to empower the CFTC with the necessary regulatory tools to effectively oversee the digital asset market.

As a researcher studying the regulatory landscape of digital assets, I’ve observed that without enactment of appropriate laws, the public interest in these assets could continue to pose risks to financial markets and investors. I strongly advocate for legislative action now, as the current trajectory is unsustainable. By implementing necessary regulations, we can safeguard American investors and preserve the stability of our financial system.

The CFTC’s chairman addressed some challenges the commission has faced while overseeing the digital asset market during his testimony. He emphasized the importance of collaboration with other regulatory bodies and involved parties to develop a coordinated strategy for regulating the market and safeguarding investors.

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2024-07-10 18:59