CFTC Chair Says 80% of All Cryptos are Commodities, Not Securities

The U.S. Commodity Futures Trading Commission (CFTC) claims that between 70% and 80% of all cryptocurrencies are not securities but commodities. 

CFTC Chair Rostin Behnam made the claim yesterday during his testimony before the Senate Committee on Appropriation. According to Behnam, about 80% of all cryptocurrencies are commodities, suggesting that their trading nature is similar to that of assets like oil and gold. 

Bitcoin and Ethereum are Commodities 

During the Senate hearing, the CFTC boss labeled Bitcoin (BTC) and Ethereum (ETH) commodities. He backed this assertion by referencing a recent court decision in Illinois, which he claimed reaffirmed the assets’ commodity status. 

Notably, FOX Business journalist Eleanor Terrett shared an excerpt from Behnam’s remark, confirming the commodity status of BTC and ETH. 

🚨CFTC Chairman Behnam says an Illinois court confirmed that $BTC and $ETH are digital commodities under the Commodity Exchange Act.

— Eleanor Terrett (@EleanorTerrett) July 10, 2024

Debate Over Crypto Classification Heats Up 

The classification of cryptos has been a major topic of discussion in the United States, with the major question centered on whether these assets should be categorized as securities or commodities. 

The SEC, under the leadership of Gary Gensler, claims that most cryptocurrencies are securities. Consequently, the SEC has attempted to exert itself as the appropriate regulator for the industry via enforcement actions against crypto-related companies that fail to register with the commission. 

Currently, the SEC is embroiled in legal battles against Ripple, Coinbase, Kraken, and Binance, among others, over alleged violations of federal securities law. 

CFTC Solidifies Bitcoin and Ethereum Commodity Status 

In the meantime, the CFTC is claiming that between 70% and 80% of all cryptos fall under its jurisdiction. The CFTC’s recent assertion solidifies Bitcoin and Ethereum’s commodity status. 

Meanwhile, the SEC has consistently noted that Bitcoin does not fall under its regulatory oversight. Although the commission did not make the same declaration for Ethereum, it recently dropped its investigation into certain ETH-related transactions. 

At the moment, BTC and ETH are the only cryptos with spot-ETFs approved by the SEC. The ETF approval confirms that the SEC does not view ETH and BTC as securities.