The head of the United States Commodity Futures Trading Commission (CFTC), Rostin Behnam, stated that Bitcoin is the only cryptocurrency considered a commodity in the aftermath of the FTX collapse. This statement was made at a restricted crypto event at Princeton University as reported by Fortune.
This opinion marks a shift from Behnam’s earlier view in October, where he suggested that Ether (ETH) could also be classified as a commodity. When asked about which crypto assets should be deemed commodities and which as securities, Behnam revised his stance, retracting his previous classification of ETH.
The CFTC chief’s change in perspective on ETH follows increased scrutiny of U.S. regulators, with allegations of impropriety, including claims that the SEC chair collaborated with FTX to dominate regulatory control.
The distinction between which cryptocurrencies fall under the commodity category has long been debated. While Bitcoin is widely acknowledged as not a security due to its decentralized nature, the classification of Ether and other cryptocurrencies remains contentious. Ripple is currently embroiled in a legal battle with the SEC over its security status.
The CFTC has faced criticism following the collapse of the FTX crypto exchange due to its association with the platform. Proposed Senate legislation, the Digital Commodities Consumer Protection Act (DCCPA), would have increased the CFTC’s oversight responsibilities but was met with censure.
Behnam defended the commission’s actions, stating that they cannot afford to delay overseeing such matters. He acknowledged the limitations of the regulatory landscape, citing the need for enhanced collaboration between regulatory bodies to establish robust regulations.
Behnam is scheduled to appear at a congressional hearing on December 1 to discuss the FTX exchange collapse and implications for future regulatory approaches.
Reports have highlighted the connections between former FTX CEO Sam Bankman-Fried and U.S. policymakers, raising concerns about lobbying efforts to designate the CFTC as the primary crypto regulatory authority. Allegations have surfaced that eight U.S. congressmen attempted to impede the SEC’s investigation into FTX.
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