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CFTC Boss Rostin Behnam Reaffirms Ethereum’s (ETH) Classification as a Commodity By DailyCoin

CFTC Boss Rostin Behnam Reaffirms Ethereum’s (ETH) Classification as a Commodity

Addressing the ongoing debate on token classification, Commodity Futures Trading Commission Chairperson Rostin Behnam has reiterated the agency’s stance that (ETH), the second largest cryptocurrency, is a commodity.

CFTC Classes Ethereum as a Commodity

Speaking about the CFTC’s current and future role in the regulation of the fintech and crypto asset industries at the “Regulating Financial Innovation: The Future of Crypto and Blockchain” event, Behnam asserted that he sees the Ether as a commodity—not a security.

The CFTC Chairman reiterated his stance on Ethereum’s status on Monday, October 24th, while speaking at the symposium hosted by Rutgers Law, Wall Street Blockchain Alliance, and Lowenstein Sandler in Manhattan.

While the CFTC chairman maintained that Ethereum was a commodity, it is not clear whether the Securities and Exchange Commission (SEC), has a different opinion. The SEC is well-known for its targeting protocols for offering unregistered securities. It seems that Ethereum falls under their purview after it was converted to Proof of Stake.

The CFTC and the SEC in disagreement?

In his rebuttal to the SEC’s stance on Ethereum’s classification, the CFTC Chairperson said: “Chairman [Gary] Gensler thinks otherwise—or at least hasn’t certainly declared one or the other.”

Behnam also dispelled notions of disagreement between two regulatory agencies. However he explained that Congress is responsible and not the agencies for the lack in regulatory clarity.

The Flipside

  • CFTC Chairpeson Behnam also debunked the industry-held belief that the CFTC is the more favorable regulator, firmly stating: “Our enforcement record speaks for itself.”

Why you should care

The classification of tokens amid the lack of regulatory clarity has been a pressing issue, and remains a massive impediment to the progress of crypto’s adoption in the U.S.

The SEC’s stance appears to conflict with the CFTC:

Gary Gensler, SEC Chair, Hints at PoS Coins as Potential Securities

Read more on the debate around Ethereum’s status in the crypto community:

MicroStrategy’s Michael Saylor Says Ethereum Is “Obviously” a Security

See original on DailyCoin

News Source and Credit

Stocksak Editorial

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