CFTC Rejects the Idea of Classifying Ethereum as a Commodity

SEC is not the only federal agency that has to try cryptocurrencies as faux digital securities. Commodity and Futures Trading Commission or CFTC has also been known to test different cryptocurrencies as commodities. CFTC Chief, Rostin Benham, has now taken a stance similar to that of SEC Chief Gary Gensler.

Ethereum and CFTC Regulations

Benham has previously claimed that Ethereum should be regulated under the CFTC regulations. He also included several other altcoins in the same list. His stance on FTX collapse has been that Bitcoin should be tried as a commodity now rather than other altcoins.

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Benham was speaking at the private event covered by Fortune Magazine and organized by Princeton University. The slot at the event that was previously reserved for SBF was replaced by a session called FTX Demise and other crypto entities lessons learned. Benham told the media that CFTC has spent a considerable corresponding with FTX.

The topic of the discussion had been that FTX planning to make leveraged trading for its consumers possible with funds issued by the exchange rather than external brokers.

The federal agency was also willing to provide relief under the lieu of the Digital Commodities Consumer Protection Act or DCCPA. He admitted that SBF was vying for extending his support for the legislature.

As per CFTC Chief, SBF had agreed to lend his support to CFTC to appoint it as the main regulator for the cryptocurrency market.

Benham has also testified in Senate that several digital currencies harbor features like commodities. He also claimed that he was in a disagreement with the SEC Chief on his commodity stance towards cryptocurrencies.

On the other hand, Gensler has kept pushing for classifying more cryptocurrencies as securities now and again. He also deflected the slow pace of regulatory agency’s claims made by Coinbase CEO Brian Armstrong.

Benham defended his position by stating that federal agencies do not have the luxury to wait and adding that there are limited resources to blame.

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