CFTC Chairman Rostin Behnam stated that 70-80% of crypto assets are not securities. This announcement, reported by journalist Eleanor Terrett, offers significant relief to the crypto industry amid ongoing disputes with the SEC.Â
Behnam called for a balanced framework to classify tokens as either commodities or securities. He stressed the need for collaboration between the SEC and CFTC.Â
CFTC Seeks Full Oversight of CryptoÂ
In a discussion with Senator Roger Marshall, Behnam advocated for CFTC’s complete oversight of the crypto market. He suggested this would simplify regulations but require redefining securities and commodities.Â
Behnam’s stance contrasts with SEC Chairman Gary Gensler, who claims all crypto, except Bitcoin, are securities. This classification impacts which regulatory body governs these assets.Â
A recent court decision in Illinois supported the CFTC’s view, ruling Bitcoin and Ethereum as commodities. The court also classified altcoins like Olympus and KlimaDAO as commodities under the Commodity Exchange Act.Â
Behnam emphasized the CFTC’s active role in the crypto sector. He noted the unsustainability of current efforts without a formal regulatory framework and called for Congressional action, as highlighted in the 2022 Financial Stability Oversight Council report.Â
Reflecting on his seven years at the CFTC, Behnam observed significant market changes, periods of high volatility, and numerous scandals. He highlighted the increasing involvement of financial institutions in crypto and expressed concern over the lack of investor protection regulations.Â