The CFTC chairman reiterated that BTC and ETH are commodities

The head of the U.S. commodities regulator has again argued that the two biggest cryptocurrencies by market capitalization — bitcoin and ether — are commodities — and his agency should be regulated.

Speaking before the US Senate Committee on Agriculture, Nutrition and Forestry on July 9, Commodity Futures Trading Commission Chairman Rustin Behnam reaffirmed a recent court ruling in Illinois that Bitcoin (BTC) and Ether (ETH) are commodities.

The ruling on July 3 is part of the $120 million Ponzi scheme involving an Oregon man accused of fraud. In the order, an Illinois district court judge said both properties qualify as merchandise.

He also said that Olympus (OHM) and KlimaDAO (KLIMA) qualified as commodities.

“In its ruling, the court reaffirmed that both Bitcoin and Ether are commodities under the Commodity Markets Act.”

Behnam also cited a 2022 report from the Financial Stability Oversight Council (FSOC), which highlighted a gap in the space market for “unsecured digital assets” and called for the agency to adopt a higher oversight position for digital. Goods.

Behnam said continued lack of action from other regulators in the United States would not erase “the public interest in digital assets” and would create more risk for financial markets and investors.

“In short, our current trajectory is unsustainable. “Federal legislation is urgently needed to create a regulatory framework that protects American investors and possibly the financial system from future risks,” he said.

Behnam said the CFTC is ready to enforce crypto regulations.

The CFTC chairman outlined five key legislative priorities he believes the agency can promote to better regulate digital commodities.

These include the agency's unique risk profile of cryptocurrencies, a permanent “fee-for-service model” funding model, the ability to customize rules requiring registrants to comply with a “comprehensive disclosure regime” regarding their crypto assets, as well as strengthening KYC. and AML privileges to the CFTC.

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Finally, the Committee urges the Committee to consider whether or not tokens are considered commodities or securities under existing law, and to promote a comprehensive education and awareness program regarding crypto assets in the United States.

“The SEC and CFTC have a long-standing partnership that facilitates strong, robust oversight of the securities and derivatives markets,” Behnam said.

“I have every confidence that the two agencies will continue to work closely together.

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