The chairman of the Commodity Futures Trading Commission (CFTC) says his company and the Securities and Exchange Commission (SEC) “have to rely on 70-year-old case law to determine what’s a security or a commodity.” He careworn that the SEC and CFTC are working collectively to regulate the crypto area, noting that “It’s not a turf war.”
CFTC Chairman on Crypto Regulation, Working With SEC
Commodity Futures Trading Commission (CFTC) Chairman Rostin Behnam talked about cryptocurrency regulation in an interview with CNBC final week.
Responding to a query about whether or not the CFTC will get together with the Securities and Exchange Commission (SEC) and whether or not the 2 companies share sources to regulate the crypto sector, he affirmed:
We do get alongside. We can share, we’ve shared, and we are going to share.
“For the CFTC, the difficulty is we are a derivatives regulator. We don’t oversee the cash markets. So, the authority that I’ve been asking Congress for is cash authorities, so that we can go in the bitcoin cash market, the ether cash market, and the other digital commodity token [markets],” the CFTC chief defined.
Commenting on SEC Chairman Gary Gensler stating that almost all of crypto tokens on the market are securities, Behnam acknowledged: “Well, we’re gonna have to figure that out legislatively because it’s a new asset class. There are different components and characteristics of this asset class as opposed to traditional asset classes.” The CFTC boss described:
We have to rely on 70-year-old case-law to decide what’s a safety, what’s a commodity.
“We have one court case in New York that says bitcoin is a commodity … We’re trying to find a reasonable outcome that will create certainty for the market,” he concluded.
Behnam additionally careworn that “it’s not a turf war” between the 2 regulatory companies.
SEC Chairman Gensler additionally beforehand mentioned that the 2 regulators are working collectively to regulate the crypto sector. While Gensler admitted that bitcoin is a commodity, he mentioned final month that “Of the nearly 10,000 tokens in the crypto market, I believe the vast majority are securities.”
Last month, the SEC introduced that it’s establishing a devoted workplace to evaluation crypto filings. Gensler additionally mentioned that he has requested SEC workers to fine-tune crypto compliance.
What do you concentrate on the feedback by the CFTC chairman? Let us know within the feedback part under.
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