CFTC Chair Declares Most Cryptocurrencies Fall Under Commodity Classification

Rostin Behnam, Chairman of the Commodities Futures Trading Commission (CFTC), asserts that the majority of cryptocurrencies should be treated as commodities, stressing the urgency for updated regulations to accommodate technological advancements. The CFTC chair made the recent comments in CNBC's "Squawk Box.

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Collaborative Efforts Needed To Address Legislative Gaps 

The Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) are at odds over jurisdiction, causing concerns over regulatory conflicts. To fill legislative gaps, Behnam emphasizes the importance of collaboration between regulatory bodies and Congress. 

Contrary to Gensler's position, Behnam advocates a positive working relationship between the CFTC and SEC, sharing a common interest in protecting U.S. markets, the financial ecosystem, and consumers.

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Congress Urged To Take a Proactive Role

Behnam calls on Congress to proactively integrate cryptocurrency technology into the financial system, highlighting the inadequacy of current regulatory frameworks. Adapting existing laws to the evolving technological landscape is critical, according to him, echoing a growing consensus among regulators for updated legislation to govern cryptocurrency growth.

Further, expressing concern over illicit cryptocurrency use in financing terrorism, Behnam highlights the importance of Anti-Money Laundering (AML) and Know Your Customer (KYC) regulations. 

In addition, he advocates for balanced attention, urging equal emphasis on ensuring stability and integrity across the broader cryptocurrency market, addressing specific challenges presented by stablecoins.