70-80% of BTC and ETH commodities are non Securities CFTC chairman clarifies Rostin Behnam appearing Senate committee.
CFTC chairman citing Illinois court argues CTFC have regulatory and oversight authority over digital assets.The legal battles between crypto companies and the Securities Exchange Commission have become a significant challenge affecting investors in Cryptocurrency markets.Behnam appeared before the Senate Agriculture Committee to discuss the classification of digital assets in the crypto market.
“If you measure the Bitcoin economy by market cap, 70-80% of assets are non-securities, meaning there is no direct federal oversight”.Amidst the legal battle over the security status of most crypto commodities, the CFTC chairman has revealed that an Illinois court ruled BTC and Ether as commodities classified under the Commodity Exchange Act.
He further argued that CTFC regulates digital commodities such as BTC. This classification brings a different perspective on BTC, ETH, and other digital assets considered securities.” Last week, a district court in Illinois entered summary judgment in favor of CTFC in a case involving fraud by an unregistered entity that promised steady returns in digital assets such as Bitcoin and Ether. In its decision, the court reaffirmed BTC and ETH are commodities under CEA .
According to SEC chairman Gary Gensler, many cryptocurrencies are securities based on the Howey test. Gensley argues that if an individual or entity is selling tokens and generating money while the buyer anticipates profits, that fits into something that can be considered a security.However, Behnam believes CTFC has the authority to regulate and oversee such digital commodities.
The classification of BTC and ETH commodities as non-securities has various implications. Such impacts include less regulatory burden since commodities have less regulation than securities, allowing more flexibility in market activities.Gladys is a passionate crypto-enthusiast and price analyst. With 3 years of experience in the blockchain space, she's well aware of the prevailing market trends.
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