Even though the need for regulatory clarity in the field of crypto is becoming increasingly overdue, there seems to be a hurdle that is making developments around this subject look like a “tuff war”.
We are talking here about the United States Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). Clarity should be, for example, where regulators have emphasized what is a commodity and what is a security in crypto? And which government agency has the mandate to regulate this or that?
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But why is it so long? One side of the story.
CFTC Chairman Rostin Behnam Shares His View
In the opinion of CFTC Chairman Rostin Behnam, what is causing this thing that looks like a battle for supremacy is a “70-year-old case lawwhich regulators rely on to say this or that should be a security or a commodity.
SEC Chairman Gensler has previously stated that only Bitcoin is a commodity, implying that the rest could be securities. On this, Behnam told CNBC’s “Squawk Box” in a interview:
“Well, we’re going to have to resolve that through legislation, because this is a new asset class and there are different components and characteristics of this asset class as opposed to traditional asset classes.”
“We have to rely on 70-year-old case law to determine what is a security or a commodity. We have a case in New York that says Bitcoin is a commodity. There are other cases out there – we’re just trying to figure it out.
Read more: SEC Chairman Gensler: New crypto regulations could impact broader markets.
CFTC wants to enter spot markets
The CFTC Chairman was quick to point out that the SEC and the CFTC do not bicker over crypto regulation. According to him, the two regulators are collaborating in the space of swaps and futures. However, what the CFTC is looking for from Congress is the green light to oversee the spot markets.
“For us, the CFTC, the difficulty is, you know, we are a derivatives regulator. We do not monitor spot markets. So the authority I’ve asked for from Congress is cash authority – so we can get into the bitcoin spot market, the ether spot market, and the other digital tokens.
Behnam also noted that despite what seem like differences, the SEC and CFTC are all trying to find a “reasonable outcome.” The main objective is to ensure the security of the crypto market and to provide the necessary protections for retail investors.
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