In a recent podcast, CFTC Chairman Rostin Behnam discussed the agency’s vigilance in regard to Bitcoin and the cryptocurrency industry.
The head of the CFTC in the United States, Rostin Behnam, has said that cryptocurrencies are primarily commodities and so ought to be regulated as such.
Behnam voiced his displeasure with the industry’s haziness, citing the possibility of fraud and manipulation.
Behnam said that market players, notably institutional investors, are searching for a clear regulatory framework for cryptocurrency in a webcast sponsored by the Intercontinental Exchange (ICE) today. He said that individuals need protection from crypto-related threats.
Market participants “seem to want some kind of regulatory framework,” Behnam said. “If there is a well-defined set of rules in place, you may expect institutional demand to rise. However, when I consider our 10 years of practice together, I immediately think of individual individuals. And I believe there’s very compelling proof that action is required.”
Behnam’s statements are at odds with those of Gary Gensler, chairman of the Securities and Exchange Commission (SEC), who says that most cryptocurrencies are securities and are thus subject to existing securities rules. Gensler said that laws are unnecessary to control the cryptocurrency market.
But Behnam said that the cryptocurrency market should be approached differently since 70% of it is commodities. He suggested a law be passed in Congress to regulate commodity tokens and give the Commodity Futures Trading Commission (CFTC) additional authority and resources to monitor the market.
Bitcoin’s value fell after Behnam’s introduction of the new rules and regulations. Products based on Bitcoin were discussed on the programme as well, including futures and ETFs. Some BTC futures contracts were recently delisted, ICE Chief Communications Officer Josh King said, citing poor demand.
