CFTC Chairman Says BTC and ETH Are Not Securities!
We consider Bitcoin and ETH a revolutionary technology, and during a recent Senate committee hearing, CFTC Chairman Rustin Behnam made a big statement about cryptocurrencies. It reaffirmed that Bitcoin and Ethereum are commodities under the Commodity Exchange Act. This classification follows a recent Illinois District Court ruling affirming their status.
According to Fox Business reporter Eleanor Terrett, CFTC Chairman Behnam has confirmed that an Illinois court found that $BTC and $ETH are digital commodities under the Commodity Markets Act. Here's what she shared on her X handle:
The distinction between goods and commodities is critical in regulation, as products such as gold or oil are tradable goods. However, securities represent ownership in a company. This classification places Bitcoin and Ethereum under the jurisdiction of the CFTC. It represents a clear distinction from SEC-regulated assets.
Here is Behnam's statement! It is estimated that 70% to 80% of cryptocurrencies are not securities and challenges SEC Chairman Gary Gensler's view. This difference highlights the ongoing debate about how to manage digital assets.
Treating Bitcoin and Ethereum as commodities provides clarity. It can bring widespread acceptance in the crypto market. This decision sets a precedent for future decisions and may reduce uncertainty that has dampened market growth.
Looking ahead, Behnam called for the CFTC to take legal action to regulate non-security signals. He also stressed the need for strong protection for investors in relation to the volatility of the market. His statements demonstrate a proactive approach to balancing regulation and promoting innovation in the cryptocurrency world.
We are currently in a phase of rapid evolution in technology and precautions in the Diffie world. In the evolution of rules, the difference between goods and commodities will be key. Behnam's comments reflect the CFTC's commitment to adapting regulations for the rapidly changing digital landscape.
