During a recent Senate committee hearing, Commodity Futures Trading Commission (CFTC) Chairman Rostin Behnam made a decisive statement regarding the regulatory status of Bitcoin and Ethereum. According to Behnam, these cryptocurrencies are considered commodities under the Commodities Exchange Act. This statement came after an Illinois district court upheld it, further cementing Bitcoin and Ethereum’s position in the financial market.

Fox Business reporter Eleanor Terrett reported that Behnam highlighted the Illinois court ruling, reinforcing the understanding that “$BTC and $ETH are digital commodities under the Commodity Exchange Act.” This distinction is crucial because it differs from stocks, which represent ownership interests in companies, while commodities, such as gold or oil, are independently tradable assets.

Behnam’s vision is aligned with a regulatory approach that clearly distinguishes commodities from securities, bringing a more defined regulatory perspective to the cryptocurrency sector.

The classification of Bitcoin and Ethereum as commodities not only brings clarity to the market, but could also encourage wider acceptance of these cryptocurrencies. This decision sets an important precedent that could alleviate the uncertainty that has been slowing market growth.

Looking ahead, Behnam suggested the need for additional legislation to strengthen the CFTC’s oversight of tokens that do not qualify as securities. He also stressed the importance of implementing robust investor protections given the volatility of the cryptocurrency market. Proactively balancing regulation with fostering innovation was a key focus of his statements.

Disclaimer:

The views and opinions expressed by the author, or any person mentioned in this article, are for informational purposes only and do not constitute financial, investment, or other advice. Investing in or trading cryptocurrencies carries a risk of financial loss.

Source: https://portalcripto.com.br/cftc-confirma-bitcoin-e-ethereum-sao-commodities-nao-titulos/



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