Reports making the news this week said that Rostin Behnam, the chair of the U.S. Commodity Futures Trading Commission (CFTC), stood at a hearing organized by the Senate Agriculture Committee on Wednesday to debate that stablecoins and Ether ought to be treated as commodities rather than securities.
From the available updates, the viewpoint contrasts with that of Gary Gensler, the chairman of the Securities and Exchange Commission (SEC), who earlier insisted that several cryptocurrencies, including Ether, must be regarded as securities and should therefore be regulated by the SEC.
Behnam’s case is founded on conventional commodities like gold or oil, stablecoins, and Ether are utilized for commercial transactions. In his opinion, these digital assets are more like commodities than securities because they are used to facilitate transactions and are not just speculative investments.
It was gathered that the CFTC see crypto as commodities. The organization filed a complaint in mid-December against FTX creator Sam Bankman-Fried, who listed the stablecoin Tether as a commodity. On Wednesday, Behnam reaffirmed this viewpoint, further reiterating the CFTC’s stance on cryptocurrency.
The Argument Intensifies
Experts who intervened, in this case, had said that treating Ether and stablecoins as commodities would mean they would fall under the CFTC’s jurisdiction. The agency would have the authority to regulate trading and enforce anti-fraud measures. They further advised that this move could help increase the legitimacy of cryptocurrencies in the eyes of regulators and traditional investors.
Meanwhile, it seems many disagree with this viewpoint arguing that cryptocurrencies need a new legal framework since they are too complicated and distinctive to be classed as commodities or securities. Stakeholders in the industry believe that treating crypto as commodities might also result in a fragmented regulatory structure, with many organizations supervising various facets of the market.
Despite these reservations, the CFTC’s stance regarding Ether and stablecoins as commodities may significantly advance the cryptocurrency sector. From the look of things, it might help open the door for additional regulation, giving investors more assurance and security when they invest in these digital assets.
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