Chair

Gary

Squawk

<p>The post <a href="https://coinpedia.org/news/cftc-chairman-reiterates-cryptos-are-commodities-amid-sec-debacles/">CFTC Chairman Claims Cryptos Are Commodities, Urges Legal Clarity</a> appeared first on <a href="https://coinpedia.org">Coinpedia Fintech News</a></p> 
<p>The Chairman of the U.S. Commodity Futures Trading Commission (CFTC) has recently reiterated a crucial stance. Amidst ongoing debates and a noticeable struggle between different regulatory bodies, the chairman has firmly stated again that most cryptocurrencies are considered commodities according to the current legal framework.</p> 
<h2 class="wp-block-heading" id="h-crypto-tokens-as-commodities-cftc-chief-s-stand"><strong>Crypto Tokens as Commodities: CFTC Chief’s Stand</strong></h2> 
<p>During a recent appearance on CNBC’s Squawk Box, CFTC Chair Rostin Behnam stressed that many digital tokens are considered commodities under the current legal framework. This not only clears up ongoing debates but also emphasizes the need for legislative action to define how digital assets should be regulated.</p> 
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
 <div class="wp-block-embed__wrapper"> 
  <blockquote class="twitter-tweet" data-width="550" data-dnt="true">
   <p lang="en" dir="ltr">"It is figuring out how existing, decades-old law, fits into this new technology that seems to be changing and ultimately needs a new way of thinking around policy and legislating," says <a href="https://twitter.com/CFTCbehnam?ref_src=twsrc%5Etfw">@CFTCbehnam</a> on <a href="https://twitter.com/hashtag/crypto?src=hash&amp;ref_src=twsrc%5Etfw">#crypto</a>. "Under existing law, many of the tokens constitute commodities." <a href="https://t.co/F3JPjWq3wG">pic.twitter.com/F3JPjWq3wG</a></p>— Squawk Box (@SquawkCNBC) <a href="https://twitter.com/SquawkCNBC/status/1734557418535756155?ref_src=twsrc%5Etfw">December 12, 2023</a>
  </blockquote>
  <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script> 
 </div>
</figure> 
<p>However, the CFTC’s view clashes with that of the Securities and Exchange Commission (SEC). SEC Chair Gary Gensler argues that crypto intermediaries deal in securities and should be under the SEC’s regulatory control. This difference in viewpoints reflects a broader conflict among U.S. regulatory bodies vying for control over the growing crypto industry.</p> 
<h2 class="wp-block-heading" id="h-sec-s-approach"><strong>SEC’s Approach</strong></h2> 
<p>Instead of creating new regulations, the SEC has chosen to apply existing laws to the crypto sector, focusing on enforcing securities laws, anti-fraud measures, and other financial regulations. While this approach maintains the current legal framework, it leaves the crypto industry wishing for clearer guidelines and a more predictable regulatory future.</p> 
<p>A significant challenge for the SEC is proving that specific crypto tokens are securities and fall under its jurisdiction. This challenge was highlighted in a recent court decision in July, where Ripple’s XRP token was ruled not to be a security, contradicting the SEC’s stance.</p> 
<h2 class="wp-block-heading" id="h-enforcement-is-key">Enforcement is Key!</h2> 
<p>As of the time of writing, the SEC has been actively enforcing regulations related to crypto assets, taking over 130 actions, including cease-and-desist orders against various companies and executives in the crypto space. Despite the CFTC’s clear categorization, the lack of unanimous agreement among regulatory bodies continues to create a complex environment for crypto assets.</p>

CFTC Chairman Claims Cryptos Are Commodities, Urges Legal Clarity

Table of Contents

CoinPedia News

Other articles published on Dec 13, 2023

Insomniac Games Faces Cyberattack: Ransom Demands Over $2 Million in Bitcoin

Cybria token soars over 680% in 24 hour pump

NEAR Price Analysis for December 13

Bitcoin’s Performance Throughout the Year

OKX DEX suffers exploit resulting in over $430k loss

Coinbase introduces spot trading for non-US institutions

Join our free newsletter for daily crypto updates!