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- SEC and CFTC are working together to regulate the crypto space
- Gensler admitted that bitcoin is a commodity
- BTC Price at the time of writing – $19,232.87
Both the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), according to the chairman, have to rely on 70-year-old case law to determine what’s a security or a commodity.
He said that it’s not a turf war, and he emphasized that the SEC and CFTC are working together to regulate the cryptocurrency industry.
CFTC Chairman on Crypto Regulation
Working with the SEC, Rostin Behnam, Chairman of the Commodity Futures Trading Commission (CFTC), discussed cryptocurrency regulation in an interview with CNBC last week.
He confirmed the following in response to a question regarding whether the Securities and Exchange Commission (SEC) and the CFTC get along and share resources to regulate the cryptocurrency industry. They get along well. They have shared, and they will continue to share.
The CFTC’s role as a derivatives regulator presents a challenge.The cash markets are not under our watch.
The head of the CFTC elaborated, So, the authority that he has been asking Congress for is cash authorities, so that they can go into the bitcoin cash market, the ether cash market, and the other digital commodity token markets.
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Majority of crypto tokens out there are securities
Behnam made the following statement in response to SEC Chairman Gary Gensler’s assertion that the majority of crypto tokens on the market are securities because it is a brand-new asset class, they will need to figure that out legislatively. In contrast to conventional asset classes, this one has distinct features and components.
He concluded that they have one court case in New York that says bitcoin is a commodity. They are trying to find a reasonable outcome that will create market certainty.
Additionally, Behnam emphasized that the two regulatory agencies are not engaged in a “turf war.
Additionally, SEC Chairman Gensler previously stated that the two regulators are cooperating to regulate the cryptocurrency industry.
Although Gensler acknowledged that bitcoin is a commodity, he stated last month that he believes the vast majority of the nearly 10,000 tokens in the crypto market are securities.
The SEC made the announcement a month ago that it would set up a separate office to look over crypto filings. Additionally, Gensler stated that he had requested SEC personnel to improve crypto compliance.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
