Addressing the ongoing debate on token classification, Commodity Futures Trading Commission Chairperson Rostin Behnam has reiterated the agency’s stance that Ethereum (ETH), the second largest cryptocurrency, is a commodity.
CFTC Classifies 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 has maintained that Ethereum is a commodity, the Securities and Exchange Commission (SEC) holds a conflicting opinion. The SEC, which has become infamous in the crypto space for targeting protocols for offering what they deem to be unregistered securities, seemingly believes that Ethereum falls under its purview following its transition to Proof of Stake.
The CFTC in disagreement with the SEC?
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 the notions of disagreement between the two regulatory agencies, however, explaining that the lack of regulatory clarity lies with Congress, not the agencies.
On 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:
SEC Chair Gary Gensler 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