CFTC Chair: Illinois Court Affirms Bitcoin And Ether As Commodities, 80% Of Cryptos Are Not Securities | Bitcoinist.com



In
a
regulatory
victory
for
the
largest
cryptocurrencies,
Bitcoin
(BTC)
and
Ethereum
(ETH)
were
officially
classified
as
commodities
during
Wednesday’s
Digital
Commodities
Senate
AG
hearing. 


Court
Backs
Bitcoin
And
Ether’s
Commodity
Status


According
to


live
coverage


of
the
hearing
by
Fox
journalist
Eleanor
Terret,
Rostin
Behnam,
Chairman
of
the
US
Commodities
Futures
Trading
Commission
(CFTC),
it
was
confirmed
that
an
Illinois
court
had
validated
the
status
of
BTC
and
ETH
as
digital
commodities
under
the
Commodity
Exchange
Act.

How To Get Free Crypto  


The
decision
aligns
with
the
CFTC’s
position,
which
is
notoriously
at
odds
with
previous
statements
by
Securities
and
Exchange
Commission
(SEC)
Chairman
Gary
Gensler. 


Gensler
had
previously


stated


that
only
Bitcoin
falls
under
the
securities
classification,
leaving
the
majority
of
other
tokens
subject
to
securities
regulation
based
on
the
Howey
test,
leading
to
increased
enforcement
actions
over
the
past
year
with


lawsuits


against
key
industry
players
such
as
Binance,
Coinbase,
Ripple,
and
Uniswap
Labs.


CFTC
Chair
Recognizes
Regulatory
Challenges


During
the
hearing,
Fox
Journalist
Eleanor
Terret
reported
that
Senator
Sherrod
Brown
questioned
what
lessons
the
CFTC
has
learned
from
past
crypto
frauds. 


Behnam
responded
by
acknowledging
the
uniqueness
of
the
technology
behind
Bitcoin
and


digital
assets
,
which
necessitates
a
different
approach
to
cybersecurity
and
operational
resilience
than
traditional
asset
classes. 


On
the
other
hand,
Senator
Cory
Booker
expressed
concerns
about
the
prevalence
of
abuse
in
the
market
and
the
responsibility
placed
on
the
SEC
and
CFTC
to
address
it.
He
noted
that
nearly
half
of
the

Coinbase Banner  


cases


on
the
CFTC’s
enforcement
docket
are
related
to
crypto,
describing
it
as
an
“extraordinary”
statistic.

Behnam
admitted
Booker’s
point,
highlighting
the
challenges
faced
by
an
agency
that
oversees
trillion-dollar
markets
while
regulating
a
market
that
Behnam
said
is
outside
its
jurisdiction
and
lacks
dedicated
funding.


Urging
action,
Senator
Booker
highlighted
the
potential
for
increased
exploitation
and
financial
losses
in
the
crypto
market
if
regulatory
measures
are
not
promptly
implemented.


Streamlined
Oversight
Of
Digital
Assets


Terret
also
reported
that
Senator
Roger
Marshall
addressed
the
jurisdictional
conflict
between
the
SEC
and
the
CFTC
in
recent
months,
determining
the


classification
of
digital
assets


Marshall
suggested
that
the
entire
responsibility
be
placed
under
the
jurisdiction
of
the
CFTC,
to
which
Behnam
agreed,
citing
expertise
and
capacity;
if
this
goes
through,
it
would
be
a
win
for
the
entire
regulation
of
the
industry,
as
Behnam
has
previously
stated
his
pro-crypto
thoughts.

FreeBitcoin Banner  


As
previously


reported
,
during
the
Milken
Institute’s
27th
annual
Global
Conference
in
May,
Behnam
emphasized
the
urgent
need
for
regulatory
frameworks
and
transparency
in
the
rapidly
growing
crypto
industry. 


In
addition,
the
CFTC
Chairman
predicted
an
increase
in
enforcement
actions
over
the
next
two
years
due
to
increased
interest
from
retail
investors
and
the
appreciation
of
digital
assets
without
clear
guidance.


The
issue
of


taxation


in
the
crypto
space
was
also
discussed
during
the
hearing.
Senator
Tommy
Tuberville
raised
concerns
about
the
fairness
of
the
(Internal
Revenue
Service)
IRS
taxing
BTC
miners
regardless
of
their
profitability. 


Behnam
admitted
his
limited
knowledge
on
the
matter,
prompting
Tuberville
to
assert
the
need
for
a
swift
resolution
to
prevent
harassment
of
individuals
entering
the
crypto
market. 


Worryingly,
Behnam
highlighted
that
while
the
SEC
and
CFTC
coordinate
enforcement
actions,
the
two
agencies
lack
regulatory
coordination.

The
daily
chart
shows
Bitcoin’s
price
recovering
the
$57,000
mark.
Source:

BTCUSD
on
TradingView.com


At
the
time
of
writing,
Bitcoin
was
trading
at
$57,870,
down
more
than
4%
in
the
past
week,
after
a
sharp
decline
of
more
than
20%
in
the
past
month
from
a
June
high
above
$70,000. 


Featured
image
from
DALL-E,
chart
from
TradingView.com

Go to Source
Author: Ronaldo Marquez


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