CFTC chair Rostin Benham deems Ethereum, stablecoins to be commodities

CFTC chair Rostin Benham said that various digital assets, including Ethereum and stablecoins, are commodities during a hearing on March 8.

Rostin Benham on ETH, stablecoins

During a hearing before the Senate Agriculture Committee, Benham said:

“I’ve made the argument that Ethereum is a commodity…it’s been listed on CFTC exchanges for quite some time.”

Benham said that this provides a “jurisdiction hook” for the CFTC to regulate derivatives markets trading ETH as well as any underlying market.

He said that any Ethereum futures products that have been listed on a platform under the purview of the CFTC have only been done so with its approval.

Benham also commented on stablecoins, stating:

“I agree … that stablecoins are and should be … regulated financial instruments. Not withstanding a regulatory framework arounds stablecoin, they’re going to be commodities in my view.”

Benham said that the company specifically determined that Tether was a commodity after scrutinizing it. He said that it decided it needed to move “swiftly” to police the company, leading to a $42.5 million settlement in late 2021.

Statements counter SEC chair

Benham made those statements in response to questions from Sen. Kirsten Gillibrand (D-N.Y.) during a hearing before the Senate Agriculture Committee.

Gillibrand posed those questions so that Benham could provide a counterpoint to previous statements from Gary Gensler, chair of the U.S. Securities and Exchange Commission. Gensler recently argued that most crypto assets are securities.

When Gillibrand suggested that this could produce a “competition” for oversight, Benham explained that exchanges and designated contract markets can seek approval from the commission or engage in self-certification. He said that the latter option moves responsibility to the CFTC and the exchange itself and involves “deep legal analysis.”

Gensler has also suggested that the CFTC could take on a greater regulatory role, meaning that Benham’s comments are not incompatible with Gensler’s.

The post CFTC chair Rostin Benham deems Ethereum, stablecoins to be commodities appeared first on CryptoSlate.


Share on facebook
Share on twitter
Share on pinterest
Share on linkedin

Follow Us

Most Popular

Get The Latest Updates

Subscribe To Our Weekly Newsletter

No spam, notifications only about new products, updates.
On Key

Related Posts

Finixio Crypto: From Online Marketing to Cryptocurrency Scams?

Cryptocurrency scams have been a constant threat to the industry since its inception. These scams not only drain funds from unsuspecting investors but also contribute to the negative perception of cryptocurrency as a whole. One such company that has been experimenting with online users’ psychology is Finixio crypto. In this article, we will delve into

Binance CFTC Lawsuit Has Enough To Affect Major Crypto Downtrend?

Crypto News: The Commodities Futures Trading Commission (CFTC) lawsuit against crypto exchange Binance changed the narrative in the market, but it remains to be seen if the move still has enough legs to affect a major downtrend in cryptocurrency prices. Although the news of the lawsuit led to significant drop in Bitcoin price, it continues

Miners Dumping Bitcoin To Crypto Exchanges, BTC Price Reversal Below $25K Likely

Bitcoin price fell from $28K to $26.5K after the US CFTC sued crypto exchange Binance and its CEO Changpeng “CZ” Zhao for violating U.S. crypto trading and derivatives regulations. The crypto market considers this move as a continued regulatory crackdown against crypto. With the crypto market already facing liquidity issues, action against Binance will further

XRP Lawyer: After CFTC, SEC Could Sue Binance Over Securities Offerings

Crypto News: The Commodity Futures Trading Commission’s (CFTC) lawsuit on crypto exchange Binance made waves in the market. But the CFTC’s views on crypto classification is becoming a much bigger debate as US regulators continue enforcement actions on crypto businesses. Meanwhile, the crypto market is perceiving this as a fight between the two regulatory agencies,