CFTC Chief Rostin Behnam Again Argues That Bitcoin and Ether Are Commodities — And His Agency Should Oversee Them

Speaking on July 9 before the US Senate Committee on Agriculture, Nutrition, and Forestry, the Commodity Futures Trading Commission Chair Rostin Behnam argued that a recent court ruling in Illinois reaffirms that Bitcoin (BTC) and Ether (ETH) are commodities.

The United States Commodities and Futures Trading Commission (CFTC) is prepared to begin enforcing rules on cryptocurrencies if they are classified as commodities, according to Rostin Behnam, chair of the commodities regulator.

Speaking on July 9 before the US Senate Committee on Agriculture, Nutrition, and Forestry, Behnam argued that a recent court ruling in Illinois reaffirms that Bitcoin ( BTC ) and Ether ( ETH ) are commodities.

The ruling on July 3 was part of a $120 million Ponzi case involving an Oregon man accused of fraud. In the order, the Illinois district court judge said both assets are qualified as commodities.

It also said that Olympus (OHM) and KlimaDAO (KLIMA) were qualified as commodities too.

Behnam also cited a 2022 report from the Financial Stability Oversight Council (FSOC), which highlighted a gap in regulation of the spot market for “digital assets that are not securities” and called for the CFTC to assume a greater position of oversight for digital commodities.

The CFTC chair noted that other regulators in the United States have yet to take action on the matter, despite the FSOC report being published seven months ago.

However, Behnam said this inaction would not “quash public interest for digital assets” and would only serve to introduce greater risk to financial markets and investors.

“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 said.

The CFTC chair outlined five key legislative priorities he believed his agency was capable of introducing to better regulate digital commodities.

These included the CFTC’s ability to tailor rules to meet the unique risk profile of cryptocurrencies, a permanent “fee-for-service model” funding model, requiring registrants to adhere to a “comprehensive disclosure regime” regarding their crypto assets as well as bolstering KYC and AML privileges for the CFTC.

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Finally, Behnam urged the committee to consider a “disciplined, balanced framework” for whether or not tokens are deemed commodities or securities under existing law as well as working to introduce a comprehensive education and outreach program concerning crypto assets in the US.

“The SEC and CFTC have a longstanding partnership that facilitates strong, robust regulation of securities and derivatives markets, Behnam said.

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