Mar 09, 2023
CFTC Chair: Stablecoins and Ether are Commodities
The United States Commodity Futures Trading Commission (CFTC) Chairman, Rostin Behnam, has again asserted that Stablecoins and Ether (ETH) should come under the purview of the CFTC during a recent Senate hearing. At the Mar. 8 hearing, Senator Kirsten Gillibrand asked Behnam about the differing views held by the regulator and the Securities and Exchange Commission (SEC) following the CFTC’s 2021 settlement with stablecoin issuer Tether. In response, Behnam stated: “Notwithstanding a regulatory framework around stablecoins, they’re going to be commodities in my view. It was clear to our enforcement team and the commission that Tether, a stablecoin, was a commodity.”
The CFTC has previously asserted that certain digital assets such as Ether, Bitcoin (BTC) and Tether (USDT) were commodities. This was notably seen in its lawsuit against FTX founder Sam Bankman-Fried in mid-December. Behnam’s most recent comments oppose a view held by SEC chair, Gary Gensler, who claimed in a Feb. 23 New York Magazine interview that “everything other than Bitcoin” is a security, a claim that was rebuffed by multiple crypto lawyers.
The differing viewpoints of the market regulators could set the stage for a conflict as each vies for regulatory control of the crypto industry. In mid-Febuary, the SEC flexed its authority against stablecoin issuer Paxos saying it may sue the firm for violating investor protection laws alleging its Binance USD (BUSD) stablecoin is an unregistered security. Around the same time, the regulator similarly targeted Terraform Labs and called its algorithmic stablecoin TerraUSD Classic (USTC) a security.
The SEC’s crypto clampdowns have seen pushback from the industry, Circle founder and CEO, Jeremy Allaire said he doesn’t believe “the SEC is the regulator for stablecoins” saying they should be overseen by a banking regulator.
The CFTC’s role in the crypto space is becoming increasingly important. With the rise of Non-Fungible Tokens (NFTs) and the web3 space, the CFTC has the opportunity to play a major role in the promotion and marketing of NFTs. As a web3 agency, the CFTC can provide guidance and expertise to those looking to sell NFTs, as well as those looking to promote them through Twitter NFT marketing and other channels.
The CFTC can also help to ensure that NFTs are compliant with all relevant regulations, and that those who are selling NFTs are doing so in a responsible manner. The CFTC can also provide assistance to NFT marketing agencies, helping them to understand the legal implications of their work and the impact their marketing activities may have on the crypto space.
Ultimately, the CFTC’s involvement in the crypto space is essential for the continued growth and development of the industry. With its expertise and guidance, the CFTC can ensure that the crypto space remains safe, secure and compliant with all relevant laws and regulations.Disclaimer: All investment or financial opinions expressed by MoonLanding Media are not recommendations and are intended for entertainment purposes only. Do your own research prior to making any kind of investment. This article has been generated based on trending topics, has not been fact checked and may contain incorrect information. Please verify all information before relying on it.