CFTC Chairman Rostin Behnam shed light on the regulatory status of crypto assets. During CNBC’s “Squawk Box” program, he provided some clarity in the environment of regulatory uncertainty within the crypto industry by confirming that many tokens are classified as commodities according to current laws.
Amid the regulatory complexities faced by the crypto industry, Behnam emphasized the urgency of legislative intervention. He mentioned that Congress members are actively battling the complex regulatory environment and highlighted the pressing need for clear guiding rules in the evolving crypto space.
Despite the United States’ significant position in the global crypto arena, he acknowledged the challenges due to the lack of regulatory clarity and consistency in enforcement activities. The combination of regulatory uncertainties with enforcement activities created a deterrent effect for businesses in the crypto sector and influenced their desire to operate in the US.
Behnam specifically pointed out a major obstacle in the form of an ongoing power struggle between the SEC and CFTC. He stated that this internal conflict impedes the creation of comprehensive regulatory frameworks and contributes to the current uncertainty surrounding crypto regulations.
Behnam reiterated that various digital assets, including Ethereum, are classified as commodities because they are listed on CFTC exchanges. This classification provides a legal framework that allows the CFTC to oversee derivatives and sub-markets of assets like Ethereum.