CFTC Calls for Expanded Authority to Regulate Cryptocurrency Market

Rostin Behnam, the former chairman of the U.S. Commodity Futures Trading Commission (CFTC), emphasized that the cryptocurrency market will remain unregulated unless the CFTC is granted greater authority. Behnam advocates for the long-standing view within the crypto industry that cryptocurrencies are classified as commodities. He pointed out that under current laws, main tokens like Bitcoin and Ethereum are considered commodities, over which the Securities and Exchange Commission (SEC) does not hold jurisdiction. Since SEC regulations do not cover commodities and the CFTC is only empowered to oversee derivatives, without new authority to regulate the spot market for 'non-security assets' in digital assets, this area will continue to lack oversight. This could expose investors to risks such as fraud, manipulation, and conflicts of interest.