• CFTC chairman Rostin Behnam asserted that ether (ETH) and stablecoins qualify as commodities and should be regulated as such.
• Senator Kirsten Gillibrand questioned Benham about the differing stance of the CFTC and the SEC on cryptocurrencies.
• Gary Gensler’s SEC has taken a heavy-handed approach toward crypto regulation amidst criticisms from web3 proponents.
CFTC Chairman Affirms Stablecoins are Commodities
The US Commodities Futures Trading Commission (CFTC) chairman, Rostin Behnam, has reaffirmed his stance on ether (ETH) and stablecoins, making it clear that they qualify as securities and should be regulated as commodities. During a Senate Agriculture committee hearing on oversight of the CFTC, chairman Rostin Behnam asserted again that he believes stablecoins should be regulated as commodities.
Senator Questions Different Stance Between CFTC & SEC
Senator Kirsten Gillibrand questioned Benham about the differing stance of the CFTC and the Securities and Exchange Commission (SEC). He referred to the former’s settlement with USDT stablecoin issuer Tether in 2021 which established its status as a commodity. While the CFTC believes bitcoin (BTC) and a good number of altcoins are commodities, its counterpart, the SEC has made it clear over time that BTC may be the only true commodity in the entire digital assets space.
SEC Takes Heavy-Handed Approach to Crypto Regulation
Gary Gensler’s SEC has taken a heavy-handed approach toward crypto regulation amidst criticisms from web3 proponents. In 2022,the dreaded regulatory watchdog executed 50% more enforcement actions against crypto projects than in 2021.
Web3 Proponents Criticize Regulatory Framework
Web3 proponents have criticized regulators for their heavy-handed approach towards cryptocurrencies, claiming it stifles innovation within this space. They argue that there should be more flexibility when it comes to regulation in order to encourage growth within this industry.
In conclusion, while both regulators have different stances regarding cryptocurrencies, they both agree that ether (ETH) and stablecoins are commodities which should be regulated accordingly. However, there is still much debate surrounding how these regulations should be enforced so as not to stifle innovation within this space.