CFTC Chair Leaves Ethereum Hanging, Says Only Bitcoin Is a Commodity: Report

The Chair of the Commodities Futures Trading Commission (CFTC) is supposedly stating that just one crypto property on the marketplace counts as a product.

According to a brand-new report by Fortune, CFTC Chair Rostin Behnam states that Bitcoin (BTC), the leading digital property by market cap, is the only virtual currency that can be thought about a product, making it fall under the jurisdiction of the regulative company.

This marks a modification in Behnam’s beliefs as in October, the Chairman stated that the leading wise agreement platform Ethereum (ETH) might likewise count as a product.

At the time, Behnam stated that the leading altcoin would not count as a security in spite of transitioning from a proof-of-work agreement system to a proof-of-stake one.

Securities do not fall under the watch of the CTFC and undergo the U.S. Securities and Exchange Commission’s (SEC) jurisdiction, which is understood in the crypto market for having harsher regulative approaches compared to the CFTC, according to the report.

Behnam goes on to state that the crypto market frantically requires clear standards and guidelines in the wake of the multibillion-dollar collapse of popular crypto exchange platform FTX.

He states that the CFTC can just take minimal enforcement actions since it does not have direct oversight when it pertains to virtual currencies.

Though the CFTC and SEC have actually had disagreements over which virtual currencies count as securities and which ones as products, Behnam has actually applauded the partnership in between the regulative bodies.

According to Behnam, the worst strategy would be for regulators to do absolutely nothing, mentioning that “inactiveness is paralysis.”

Included Image: Shutterstock/Asukanda/Konstantin Faraktinov