Behnam highlighted that an Illinois court has affirmed Bitcoin and Ethereum as digital commodities under the Commodity Exchange Act.
This legal classification solidifies their status within the regulatory framework governed by the CFTC. Let’s discover more about this important news for Bitcoin.
Regulatory Frameworks for Bitcoin and Financial System Protection
Addressing the broader crypto market, Behnam emphasized that 70-80% of cryptocurrencies are considered non-securities. This underscores their distinct regulatory requirements compared to traditional financial assets. When questioned by US Senator Sherrod Brown about lessons learned from past crypto frauds, Behnam stressed the unique technological aspects of digital assets, which necessitate a reevaluation of cybersecurity and operational resilience measures.
Source: X
US Senator Cory Booker expressed concern over the prevalence of abuse in the crypto market and the regulatory challenges faced by the CFTC. Notably, Behnam acknowledged that nearly half of the agency’s enforcement docket pertains to crypto-related cases. This describes this as an “extraordinary” burden for an agency tasked with overseeing trillion-dollar markets without commensurate funding or jurisdiction.
Source: X
The debate over regulatory jurisdiction between the CFTC and SEC also emerged, with Senator Roger Marshall questioning whether consolidating oversight under the CFTC would streamline regulatory clarity. Behnam responded positively, suggesting that the CFTC is well-equipped to handle digital assets but would require definitional changes to effectively distinguish between securities and commodities.
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