The debate between the SEC and CFTC on the matter of cryptocurrency regulations is only growing spicier with time. The Chairperson of CFTC recently faced off against his SEC counterpart on the matter of Bitcoin-only remarks.
For context, SEC chairperson Gary Gensler recently remarked that Bitcoin is the only cryptocurrency that is not an unregistered security during this Congress testimony.
Rostin Benham, the CFTC chief, told the Agriculture Committee of the Senate that Ethereum, which is the second largest cryptocurrency by market cap, is a commodity. He further mentioned that ETH had been listed on various CFTC exchanges, and it explains its nature as a commodity.
The Clash Between SEC and CFTC in Terms of Crypto Regulations
Benham claimed that on account of the legal precedence attached to Ethereum being a commodity, SEC does have any legal jurisdiction over it. He asserted that CFTC is technically the right enterprise to regulate Ethereum, its native currencies, and relevant derivatives.
Meanwhile, SEC has been pinning for a long time on the cryptocurrency market to bring more unregistered securities lawsuits. His recent remarks have sparked a strong controversy in the cryptocurrency market circles.
SEC chief only discounted Bitcoin from the charge of being an illegal investment asset. Thus his assertion was also extended to Ethereum in addition to other altcoins.
Benham has proceeded to declare that Ethereum was approved for listing its futures on the CFTC exchange on account of its legal qualification. He exclaimed that in case CFTC had not viewed Ethereum as a commodity, it would not have been listed.
He maintained that CFTC is committed to providing strong evidence in support of this cause to ensure that Ethereum is a commodity.
The assertion has become a strong idea since the transition of Ethereum from PoW to PoS consensus mechanism. The scuffle between SEC and CFTC also expands to the matter of stablecoins. The former is called to deem them as securities, while the latter is determined to classify them as commodities.
