The head of the commodities regulator has expressed contradiction with the Securities and Exchange Commission (SEC) over Prometheum’s Ethereum (ETH) claims. He warned that permitting certainly one of its registered companies to custody Ethereum might create battle inside U.S. monetary market laws. According to Commodity Futures Trading Commission (CFTC) chairman Rostin Behnam, each Bitcoin and Ethereum are commodities.
CFTC & SEC Clash On Prometheum’s Ethereum Custody Plans
CFTC Chairman Behnam testified earlier than the House Committee on Agriculture on Wednesday, March 6. Moreover, he addressed the latest choice by SEC particular goal broker-dealer (SPBD) licensed Prometheum to supply ETH custody companies. Countering the entity’s claims, he declared, “Both Bitcoin and Ether are commodities.”
While the CFTC and the SEC aren’t on the same web page, Behnam indicated that he doesn’t imagine Prometheum’s choice aligns with the SEC’s view of Ethereum. He emphasised the essential nature of the SEC’s response to Prometheum’s choice. The CFTC Chairman famous, “The issue is if we do have any action by the SEC to essentially validate [Prometheum’s] decision, i.e. constituting Ether as a security, it will then put our registrants, our exchanges who list Ether as a futures contract sort of in non-compliance of SEC rules as opposed to CFTC rules.”
Regarding the regulatory ambiguity surrounding Ether, Behnam famous that SEC-registered SPBDs are solely permitted to custody securities. However, SEC Chair Gary Gensler has not explicitly clarified whether or not Ethereum needs to be thought-about a safety or a commodity.
Also Read: SEC Commissioners Criticize ShapeShift Settlement for Lack of Clarity
Behnam Urges Congress To Intervene
Additionally, Behnam harassed the significance of preserving “market integrity.” Moreover, he highlighted that contemplating Ethereum as a commodity has confirmed efficient for market performance over time. In his ready remarks, Behnam underscored the challenges posed by market evolution and know-how, stressing the necessity for legislative motion from Congress.
In addition, he identified that the elevated participation within the crypto market has pushed the bounds of the present regulatory framework, notably in addressing the regulatory hole over digital commodity asset spot markets. Behnam reiterated his perception that Congress should intervene to handle these regulatory challenges successfully.
Also Read: Ripple CLO Weighs In On Flagged SEC’s “Loosey-Goosey” Rules
The introduced content material could embody the non-public opinion of the writer and is topic to market situation. Do your market analysis earlier than investing in cryptocurrencies. The writer or the publication doesn’t maintain any duty to your private monetary loss.
