March 9, 2023 1:29 AM | 1 min read
Rostin Behnam, the Chairman of the Commodities and Futures Trading Commission (CFTC) said that Ethereum (CRYPTO: ETH), the second-largest cryptocurrency after Bitcoin (CRYPTO: BTC), is a commodity.
What Happened: Behnam testified on Wednesday before the Senate Agriculture Committee, that Ethereum is a commodity because “It’s been listed on CFTC exchanges for quite some time.”
Behnam emphasized that the CFTC has the legal authority to regulate derivatives markets trading Ethereum and other underlying markets. Furthermore, he asserted that any Ethereum futures products listed on a platform under the purview of the CFTC have been done with its explicit approval. This provides a strong “jurisdiction hook” for the Commission.
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.@CFTC Chair Rostin Behnam Says Stablecoins Are Commodities At Senate Agriculture Hearing https://t.co/g4jnFsSFkc @SenGillibrand pic.twitter.com/0Zg9ULZvVs
— blockchain tipsheet (@blockchaintpsht) March 8, 2023
His opinion seems to run counter to that of SEC chairman Gary Gensler, who argued last month that “everything other than Bitcoin” falls under securities.
Behnam also believes stablecoins should be classified as commodities — rather than securities — unless legislation expressly declares otherwise.
Price Action: At the time of writing, BTC was trading at $21,771, down 1.80% in the last 24 hours, according to Benzinga Pro.
Read More: Bitcoin, Ethereum, Dogecoin Drop On Report Of Biden’s Crypto Tax Tweaks: Analyst Urges Focus On ‘Red Candles’ Amid Major FOMO
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