NAIROBI (CoinChapter.com) — Rostin Behnam, Chairman of the Commodity Futures Trading Fee (CFTC), testified earlier than the Senate Agriculture Committee, claiming that 70-80% of cryptocurrency tokens are non-securities.

This contrasts sharply with SEC Chairman Gary Gensler’s place that almost all cryptocurrencies are securities, highlighting a rising regulatory divide between the CFTC and the SEC.

BTC and ETH Categorised as Commodities

Throughout his testimony, Behnam famous the Illinois court docket’s classification of Bitcoin (BTC) and Ethereum (ETH) as commodities beneath the Commodity Alternate Act. This aligns with the CFTC’s perspective and enhances its jurisdiction over these main digital property.

“The Illinois court has established that Bitcoin and Ethereum are commodities,” Behnam said, emphasizing the significance of this classification for regulatory readability.

The court docket’s resolution underscores the CFTC’s position in overseeing BTC and ETH, separating these property from different tokens doubtlessly categorised as securities. This clear regulatory framework is important for market contributors searching for certainty in an evolving panorama.

CFTC Chair Requires Federal Laws

Behnam’s assertion that 70-80% of tokens are non-securities underscores the necessity for up to date regulatory measures. He argued that present legal guidelines are inadequate to guard buyers and handle digital asset market dangers.

As a result of dangers that the unregulated market poses to US buyers, Behnam claimed to advocate for brand spanking new legislative authority for the CFTC and urged Congress to behave swiftly.

Moreover,the official highlighted gaps in regulation for non-security tokens, which signify a good portion of the market. With out new legal guidelines, investor safety stays insufficient, which may result in elevated fraud and instability in monetary markets.

Pressing Attraction to Congress

Behnam appealed to Congress to go laws enabling the CFTC to manage non-security digital property successfully. He warned that with out such measures, the general public’s curiosity in digital property may threaten monetary stability.

His testimony additionally pointed to the challenges the CFTC faces in regulating the digital asset market. Behnam expressed the company’s readiness to collaborate with different regulatory our bodies and stakeholders to develop a complete regulatory framework.

This cooperation goals to reinforce investor safety and guarantee market integrity.

Behnam’s testimony earlier than the Senate Agriculture Committee marks a pivotal second within the regulatory debate over digital property. His name for brand spanking new legislative authority highlights the pressing want for readability and oversight within the evolving cryptocurrency market.

Consequently, because the regulatory panorama evolves, the CFTC’s place will form the way forward for cryptocurrency regulation in the US.