At an invitation-only crypto event at Princeton University, CFTC (Commodity Futures Trading Commission) Chair Rostin Behnam said the only crypto that should be considered a commodity is Bitcoin (BTC). The statement indicated a change in stance from the CFTC after previously saying that Ethereum (ETH) is also a commodity.
During his presentation, Behnam also emphasized the need for legislation and the risks associated with an unregulated crypto sector. Behnam’s CFTC came under fire after FTX’s demise for its ties to the exchange and its founder, Sam Bankman-Fried (SBF). According to SBF, he spoke to the commission for “tens of thousands” of hours about a plan to allow users to execute trades with money sourced directly through FTX rather than through a broker.
Bitcoin (BTC), designated a commodity by the CFTC, has been hailed by the crypto community. BTC maximalist Micheal Saylor was quick to share the news on his Twitter account.
CFTC Chairman Rostin Behnam said in Princeton today that the only cryptocurrency that should be considered a commodity is #Bitcoin, going back to earlier comments in October when he suggested that ether could also be a commodity .https://t.co/o5NrejDVaU
— Michael Saylor⚡️ (@saylor) December 1, 2022
Is Bitcoin a Commodity?
The status of BTC as a commodity is still being debated among agencies, investors, and users. In a recent blog, the ECB (European Central Bank) said that Bitcoin is not a commodity. Additionally, the blog explained that BTC “does not generate cash flow (like real estate) or dividends (like stocks), cannot be used productively (like commodities) or provide social benefits (like gold).”
One of the main arguments left by the lack of regulation was whether different cryptocurrencies should be categorized as commodities or securities. The SEC (Securities and Exchange Commission) and the CFTC have yet to agree on the definition of cryptocurrencies like Bitcoin and Ethereum.
The SEC is currently in a legal battle with Ripple over the alleged sale of unregistered securities. Former director of the SEC’s corporate finance division, William Hinman, claimed in a speech that Ethereum had gone from a security to a non-security. The speech has become one of the key defenses for Ripple. The outcome of the lawsuit will shed much-needed light on how crypto markets should be regulated and by whom.
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