Is Bitcoin The Only Crypto Asset That's A Commodity? Here's What CFTC Chief Says

Zinger Key Points
  • Following FTX collapse, CFTC chief backs Bitcoin as commodity.
  • Due to its connections to the FTX, CFTC has been under intense scrutiny since its collapse.

Bitcoin is the only cryptocurrency asset that can be seen as a commodity as the industry reels with the aftershocks from the collapse of FTX FTT/USD.

That's according to U.S. Commodity Futures Trading Commission (CFTC) chief Rostin Behnam.

See Also: Yes, FTX Was A Fiasco, But US Regulation Is 'Onerous' - How INX Can Help

“It’s unlike any commodity we have dealt with,” Behnam said at Princeton’s new DeCenter, a blockchain-focused institute funded by crypto titans and Princeton alumni.

According to Fortune, Behnam was responding to a query on whether crypto assets should be considered commodities and which ones are securities.
His remarks stand in stark contrast to his remarks from October, in which he asserted that Ether ETH/USD may potentially be thought of as a commodity.

Following intense examination of US regulators and allegations of corruption, the head of the CFTC has retracted his remarks on ETH.

Republican senators have already accused the SEC chair of working with FTX "to acquire a regulatory monopoly."

There has been much discussion about which cryptocurrencies the law considers to be commodities.

Due to its true decentralized nature, Bitcoin is universally seen as lacking security, whereas Ether's and a number of other cryptocurrencies' legal status has been up for debate.

The SEC has also filed a security action against Ripple.

In the wake of the collapse of the FTX cryptocurrency exchange, the American financial regulator has found itself in hot waters mainly due to its affiliation with the exchange.

See Also: Binance Hires Trump's Former Audit Firm To Verify Cryptocurrency Reserves

The Digital Commodities Consumer Protection Act (DCCPA), a part of the proposed Senate legislation, was expected to give the CFTC supervisory authority. 

The CFTC chief drew heavy criticism for the same but defended the commission's actions, saying they did not have the luxury of waiting.
Behnam criticized the "matrix of regulators" as a flawed structure and said that the committee has limited supervisory authority. 
However, he urged greater coordination amongst the numerous regulatory authorities in order to create strong legislation.

On Dec. 1, the head of the CFTC is scheduled to testify before Congress to address the failure of the now-bankrupt cryptocurrency exchange FTX and the lessons learned from the mishap.

Next: BlackRock CEO Fink Says The Asset Manager Invested This Many Millions In FTX

Posted In: CryptocurrencyNewsTop StoriesMarketsBitcoinCommodity Futures Trading Commission (CFTC)cryptocurrenciesEthereumFTXSam Bankman-FriedSecurities and Exchange Commission
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