The chief of the U.S. Commodity Futures Trading Fee (CFTC), Rostin Behnam, has as soon as once more advocated for his company to supervise Bitcoin and Ethereum, the 2 largest cryptocurrencies by market cap, by classifying them as commodities. Talking earlier than the U.S. Senate Committee on July 9, Behnam referenced a latest Illinois courtroom ruling that reinforces this classification.

The courtroom resolution on July 3 was a part of a $120 million Ponzi scheme case involving an Oregon man accused of fraud. The Illinois district courtroom decide declared that each Bitcoin and Ethereum qualify as commodities underneath the Commodity Trade Act. The ruling additionally prolonged this classification to Olympus (OHM) and KlimaDAO (KLIMA).

Behnam additionally cited a 2022 report from the Monetary Stability Oversight Council (FSOC) that identified a regulatory hole within the spot marketplace for digital belongings that aren’t securities, suggesting that the CFTC ought to play a extra important function in overseeing digital commodities.

Behnam emphasised that the dearth of motion from different U.S. regulators wouldn’t diminish public curiosity in digital belongings and will probably enhance dangers to monetary markets and traders. “In short, our current trajectory is not sustainable. Federal legislation is urgently needed to create a pathway for a regulatory framework that will protect American investors and possibly the financial system from future risk,” he asserted.

The CFTC Chair outlined 5 key legislative priorities he believes his company might implement to raised regulate digital commodities. These priorities embrace crafting guidelines tailor-made to the distinctive threat profile of cryptocurrencies, establishing a everlasting “fee-for-service” funding mannequin, requiring complete disclosure from registrants about their crypto belongings, and enhancing the CFTC’s Know Your Buyer (KYC) and Anti-Cash Laundering (AML) capabilities.