The CFTC has entered into several investigations due to the failure of FTX due to its connection with crypto exchanges and the SBF’s efforts to make the commission the first regulatory agency for crypto.
US Commodity Futures Trading Commission (CFTC) director Rostin Behnam said that Bitcoin is the only crypto asset that can be considered as a commodity at a crypto event only at Princeton University, Fortune reported.
Behnam’s speech was very different from his first speech in October, where he emphasized Ether
ETH ($1,288) can also be considered a commodity. The CFTC chief is answering questions about which crypto assets should be considered stocks and which qualify as securities.
The retreat of the head of the CFTC and his statement on ETH comes in the wake of the investigation of the US regulators and corruption allegations, and the Republican lawmakers accuse the chairman of the SEC of coordinating with FTX “to gain regulatory control”.
The debate about the eligibility of cryptocurrencies as commodities under the law has been long. Bitcoin is considered insecure due to its true nature, while the status of Ether and many other cryptocurrencies is a controversial topic. Ripple is facing a securities lawsuit from the SEC. The US financial regulator found itself in hot water following the collapse of the crypto exchange FTX, mainly due to its connection to the exchange.
The CFTC was set to receive oversight powers through a Senate bill called the Digital Commodities Consumer Protection Act (DCCPA), while the CFTC head faced widespread criticism for the same, but defended the committee’s actions, saying that they don’t have that. the luxury of waiting. Behnam said the commission had limited oversight powers and blamed the “matrix of regulators” as a flawed system. However, he called for better coordination between a long list of regulators to come up with strict standards. The CFTC chief is scheduled for a conference call on Dec. 1, discussing the failure of the now-bankrupt crypto exchange FTX and the lessons learned from the debacle. Former CEO Sam Bankman-Fried has close ties with US lawmakers and his efforts to make the CFTC a key crypto regulator were interviewed by many in the crypto community. A recent report alleged that 8 members of the US Congress tried to stop the SEC from investigating FTX.
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