Bitcoin and Ether, according to the chairman of the US Commodity Futures Trading Commission (CFTC), are commodities.
He described how his organization is collaborating with the Securities and Exchange Commission (SEC) to legislate the crypto industry, emphasizing that "there are no client safeguards in the crypto market right now."
Bitcoin and Ether Are 'For Sure' Commodities
In an interview with a media outlet last week, CFTC Chairman Rostin Behnam discussed the CFTC and SEC's supervision of cryptocurrencies.
The chairman was asked for his thoughts on a plan in Congress that would place the Securities and Exchange Commission in control of security tokens and the Commodities Futures Trading Commission in charge of commodity tokens.
"This is a long-standing dispute between the CFTC and the SEC. We had a great history together... Commodities should be governed by the Commodity Futures Trading Commission, and securities should be overseen by the Securities and Exchange Commission," Behnam explained.
Some currencies in the crypto world will be securities, while others will be commodities, according to the CFTC chairman.
When asked about SEC Chairman Gary Gensler's contention that most crypto tokens are securities, Behnam emphasized that the most popular cryptocurrencies are commodities. He emphasized, "I can declare with certainty that bitcoin... is a commodity. As well as Ether.”
"There are lots of community coins," the CFTC chief said, acknowledging that there may be a lot of security coins. "I think it would make sense that each authority has jurisdiction over commodities and securities separately," he explained.
If there is any variance between the two bodies, the CFTC chairman was asked. "I wouldn't say there's a disagreement," he said, noting that each agency strives to do the best it can.
Behnam added of the crypto market sell-off last week, "A lot of people were hurt." There was a lot of value lost in the market, and there are now no client protections.
He stated, that both the CFTC and the SEC aim to govern the crypto sector carefully, protect clients, and maintain financial sustainability.
At last, after the CFTC and the SEC collaborated to help establish stronger regulatory standards for both commodities and security tokens, the long-running conflict between the two agencies might come to an end.