CFTC Chair on crypto regulation: there’s a ’70-year old case-law’

Crypto Update
4 Min Read

Even as regulatory clarity needs crypto As it becomes more and more overdue, there appears to be a hindrance that is making development around the subject look like a ‘tough war’.

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Here we are talking about the US Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC). For example, the clarity should be such where the regulators have indicated that a Thing And what is security in crypto? And which government agency has the right to regulate this or that?

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But why is it taking so long? one side of the story.

CFTC President Rostin Behnam Shares His Thoughts

What is the reason for this looking like a battle for supremacy, in the view of CFTC President Rostin Behnam?70 year old case law“That regulators are relying on it to say that it must be a security or a commodity.

SEC Chairman Gensler has previously said that only Bitcoin is a commodity, meaning the remainder may be securities. On this Behnam told CNBC’s ‘Squawk Box’ in one Interview,

“Well, we have to understand this legislatively, because this is a new asset class and this asset class has different components and characteristics, unlike traditional asset classes.”

He added:

“We have to rely on 70 year old case law to determine what is a security or a commodity. We have a case in New York that says bitcoin is a commodity. There are other cases out there – we just need to find out. trying.”

Read more: SEC Chair Gensler: New Crypto Regulation Could Affect Broader Markets,

CFTC wants to enter cash markets

The CFTC chairman nevertheless emphasized that both the SEC and the CFTC are not disputing cryptocurrency regulation. According to him, both the regulators cooperate in the swaps and futures space. However, what the CFTC wants from Congress is a green signal to oversee the cash markets.

“For us, the CFTC, the difficulty is, you know, we are a derivatives regulator. We don’t oversee the cash markets. So the authority I am asking Congress for is the cash authorization – so that we can access the bitcoin cash market. , Ether to the cash market and other digital tokens.

Behnum also said that the SEC and CFTC are all working toward finding a “reasonable outcome,” regardless of what the differences look like. Primarily, the goal is to ensure certainty for the crypto market as well as provide the necessary security to retail investors.

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