Rostin Behnam, Chairman of the U.S. Commodity Futures Buying and selling Fee (CFTC), emphasised the need for a transparent regulatory framework within the burgeoning cryptocurrency market throughout a latest podcast interview with the Intercontinental Alternate (ICE) Aug. 14.
Expressing issues in regards to the business’s present ambiguity and vulnerability to potential fraud and manipulation, Behnam acknowledged, “The market appears to need some type of regulatory framework.”
These feedback come as institutional curiosity in cryptocurrency is on the rise, and market contributors search readability. “You’ll be able to predict that institutional demand will seemingly enhance if there’s a clear regulatory framework,” he famous. Behnam’s emphasis was on establishments and particular person contributors who require threat hedging throughout the crypto surroundings.
Commodities v. securities
Behnam has commented extensively on the cryptocurrency area previously, most notably to precise his view that many cash, together with Bitcoin and Ethereum, must be thought-about commodities.
Nonetheless, this place is considerably at odds with that of Securities and Alternate Fee (SEC) Chairman Gary Gensler, who beforehand talked about that the overwhelming majority of cryptocurrencies needs to be categorized as securities and are thus already underneath present securities legal guidelines. Behnam challenges this view, contending that about 70% of the crypto market needs to be categorised as commodities. He appealed to Congress to enact laws to supply clearer pointers on commodity tokens, bolstering the CFTC’s powers in overseeing this sector.
This isn’t the primary time the CFTC Chairman has waded into the crypto regulation debate. In a March 2023 listening to, Behnam declared digital belongings like Ethereum and sure stablecoins as commodities, difficult the SEC’s broader classification of cryptocurrencies as securities. This distinction between the 2 regulatory our bodies has lengthy been a matter of competition and can seemingly proceed to form the regulatory panorama of the cryptocurrency business.
For now, as institutional and particular person curiosity within the crypto market persists, the requires clearer, extra nuanced, and complete regulatory pointers develop louder.
