CFTC Chair Insists Ether Is a Commodity, Not a Security as Claimed by SEC Chairman

The president of the Commodity Futures Trading Commission (CFTC) has insisted that ether is simply a commodity, not a information arsenic claimed by the president of the Securities and Exchange Commission (SEC). The CFTC main stressed that the derivatives watchdog would not person allowed ether futures products to beryllium listed connected CFTC-regulated exchanges “if we did not consciousness powerfully that it was a commodity asset.”

Ether Is a Commodity, Claims CFTC Chairman

The president of the Commodity Futures Trading Commission (CFTC), Rostin Behnam, addressed the claim made by the president of the Securities and Exchange Commission (SEC), Gary Gensler, that each crypto tokens different than bitcoin are securities astatine a proceeding earlier the Senate Committee connected Agriculture, Nutrition, and Forestry connected Wednesday.

During the hearing, Senator Kirsten Gillibrand (D-NY) asked Behnam: “In airy of Chairman Gensler’s caller proposition that each integer assets but for bitcoin are securities, what does that mean for a fig of designated declaration markets [DCMs] presently offering futures oregon swaps connected ether?” DCMs are exchanges that run nether the regulatory oversight of the CFTC.

“It would evidently rise questions astir the legality of those DCMs, designated declaration markets, listing these integer assets that are purported to beryllium securities,” the CFTC president replied, reiterating:

I’ve made the statement that ether is simply a commodity.

Noting that ether-based products person been “listed connected CFTC exchanges for rather immoderate time,” Behnam said: “For that reason, it creates a precise nonstop jurisdictional hook for america to constabulary evidently the derivatives marketplace but besides the underlying marketplace arsenic well.”

He further detailed: “The process for which an speech oregon DCM volition database a declaration is precise wide nether our law. They could question support from the Commission [CFTC] oregon they could self-certify a product. That self-certification process is 1 that shifts the work to some the CFTC and the marketplace participant.”

The CFTC main proceeded to explicate wherefore helium powerfully believes that ether is simply a commodity. “I would accidental superior and heavy ineligible investigation goes into the thought process earlier a merchandise is self-certified, truthful there’s nary uncertainty successful my caput and having known this and been astatine the Commission erstwhile ether futures were listed that some the speech and the Commission thought precise profoundly and thoughtfully astir ‘what is the product?’ and ‘does it autumn wrong the commodity authorities oregon the information regime?'” He stressed:

We would not person allowed the product, successful this case, the ether futures product, to beryllium listed connected a CFTC speech if we did not consciousness powerfully that it was a commodity asset.

“Because we person litigation risk, we person bureau credibility hazard if we bash thing similar that without superior ineligible defence oregon defenses to benignant of enactment our statement that the plus is simply a commodity,” Behnam concluded.

Do you deliberation ethereum volition beryllium classified arsenic a information oregon a commodity successful the U.S.? Let america cognize successful the comments conception below.

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