only bitcoin (btc) be considered a commodity for regulatory purposes, and not Ethereum (ETH)Rostin Behnum, chairman of the Commodity Futures Trading Commission (CFTC), said in a recent speech.
The idea that BTC is the only cryptocurrency that can be considered a commodity is very important to the crypto space, and could potentially spell trouble for ETH and other coins. It also contradicts previous comments from Behnam, who suggested in October that ETH could also be a commodity.
During the event, Behnam commented on his experience working with bitcoin as a regulator and acknowledged that the asset is difficult to regulate within the current framework.
,[Bitcoin is] unlike anything we’ve dealt with,” Behnum said.
If ETH is considered a security for regulatory purposes, a strong regulatory crackdown on ETH as well as almost all other altcoins can be expected from US regulators. Such a scenario has long been feared in Ethereum circles, although it is unclear how it will affect the Ethereum project and the price of ETH.
The Ethereum Foundation, which funds most of the development happening on the Ethereum network, is not based in the US, but is registered in Switzerland. Additionally, most trading in ETH and other altcoins occurs on offshore exchanges that are not regulated in the US.
Blurred Lines Between Regulators
In his remarks, the CFTC Chairman further acknowledged that the Matrix is an “imperfect system” among regulators. Still, he said cooperation between the various regulatory agencies in the US is good.
The two most important agencies to regulate crypto in the US are the Securities and Exchange Commission (SEC), headed by the well-known crypto-critic gary gensler, and Behnum’s CFTC. Traditionally, the CFTC has been tasked with overseeing commodities futures trading, while the SEC was in charge of the stock market and other spot markets.
With bitcoin’s status as a commodity that is traded in both the spot and derivatives markets both offshore and onshore, however, the lines between regulators have blurred somewhat. Last year Behnam asked Congress directly Extend the authority of your agency In covering the digital asset market, he says he wants to “protect clients and strengthen market resilience.”
At the same time, Gary Gensler of the SEC has also indicated that he wants More Powers for the SEC to Regulate Crypto,
Prominent crypto investors in attendance
Behnam’s latest comments were made Wednesday at Princeton University’s new blockchain-focused institute, Decenter. Present in the audience were several prominent figures from the crypto community, including Joseph Lubin, Mike Novogratz And Dan Morehead,
ftx Founder Sam Bankman-Fried, who was supposed to be the keynote speaker at the event, did not appear. Instead, there was a panel discussion on “The Demise of FTX and Other Crypto Entities”.
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