CFTC Chairman warns of conflict with SEC over Prometheum ETH game
“Both Bitcoin and Ether are commodities,” Commodity Futures Trading Commission Chairman Rustin Behnam testified before the House Agriculture Committee in a March 6 hearing.
Behnam spoke last month about the SEC's decision to become a licensed Special Purpose Broker-Dealer (SPBD) for Promethium to provide ETH custody services.
“From my understanding, from reading the press and talking to my staff, that reached the SEC, this was an independent decision by Promethium,” Behnam said in response to a question about his views on the company's plans.
“It is my understanding that this is not a decision by the SEC, this is an individual decision by the organization [Prometheum]He said.
Behnam said the decision does not align with the SEC's view of Ether, adding that how the SEC responds to the Promethium decision is “very critical.”
“The point is to make sure that if we have any action by the SEC. [Prometheum’s] The decision, that is to establish Ether as a security, will then place our exchanges that list Ether as futures contracts in a manner that does not comply with SEC rules, as opposed to CFTC rules,” Bhannam said.
SEC-registered SPBDs can only hold securities, but SEC Chairman Gary Gensler has not made it clear whether ETH is a security or a commodity.
Related: Coinbase Analysts Argue for Spot Ether ETF as Analysts Warn of ‘Concentration Risk'
He emphasized the importance of maintaining the integrity of the market and added that the conclusion that “Ether is a commodity” has made the markets work well for “years of decision”.
In previously prepared comments, Behnam said the CFTC “regularly runs up against limits” on existing rules due to market evolution and technology.
He noted that the increase in crypto market participation has “tested the limits of the existing regulatory framework”.
“The lack of legislation to address the regulatory gap in the digital asset space market has not hindered the public's enthusiasm for digital assets,” Behnam said. I believe Congress needs to act.
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