Ethereum and stablecoins: raw materials according to the CFTC

Action or commodity: the eternal debate – Decidedly, the DRY (Securities Exchange Commission) and the CFTC (Commodity Futures Trading Commission) are not not on the same wavelength. And that is to say the least. Each of the two regulators is fighting to establish its control over the market – promising, it must be recognized – cryptocurrencies.


SEC vs. CFTC: Regulators’ Crypto Battle Continues

On one side we have the SEC and at its head, Gary Gensler. The latter, as a true tyrant, takes malicious pleasure in martyring the entire crypto ecosystem lately. Not happy to distribute fine upon fineat the exchange krakenfor example, it also has sanctioned the company Paxos, issuer of the stablecoin BUSD. He accuses it of not having registered with the SEC, while the very status of these cryptocurrencies is far from clear. As proof, even the regulators do not agree among themselves. Fact, BUSD capitalization collapsed in a few weeks.

Clearly, the SEC insists that all cryptocurrenciesbitcoin excepted, are financial assets. Actions that fall within his lap. In other words, cryptos must switch to legislation that is under the full control of the SEC.

On the other side of the regulatory barrier, we have the CFTC whose opinion is quite different. Its president, Rostin Behnamhas again share his opinion on the matter during a speech in the Senate.

The CFTC gives its opinion on the categorization of Ethereum.  For its president Rostin Behnam, it is a raw material.
For Rostin Behnam Ethereum and stablecoins are raw materials – Source: Twitter

“We wouldn’t have allowed the product listing; in the present case, the future on Ethereum […] on the CFTC exchange, if we weren’t completely convinced that it was a commodity. »

Rostin Behnam

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Ether and USDT: commodities according to the US regulator

For Behnam, the categorization of cryptocurrencies, as Ethereum, or stablecoins has already been seriously considered by their teams. Indeed, meticulous studies are conducted on the nature of each asset before any possible listing on their stock exchange.

” [Pour chaque produit listé] we have a risk of litigation. We have credibility concerns if we do something without a very serious legal study, so as to support our argument as to the classification of this type of asset as a commodity. »

Rostin Behnam

However, the CFTC boss is not limited to the qualification of Ethereum, but also extends its analysis to stablecoinsas’USDT from Tether. That is to say, cryptocurrencies whose value is indexed to that of fiat currencies such as the dollar.

“Stablecoins should be regulated financial instruments. […] In addition, with regard to the regulatory framework to be defined around stablecoins, these will eventually be considered as commodities, in my opinion. »

Rostin Behnam

For CFTC legal teams, Ethereum and stablecoins are without a shadow of a doubt commodities. A categorization that could hopefully allow the sector crypto from to develop more freely only under the aegis of the SEC. An actor who has continued to demonstrate his hostility to this new digital UFO in recent times. A UFO precisely which should be considered as such by the regulatory authorities, rather than seeking at all costs to enter the rounds that are Bitcoin, Ether or USDT in tiny square boxes.

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