Commodity Futures Trading Commission (CFTC) Chairman Rostin Benham noted that bitcoin and Ether are commodities and should fall under the purview of his agency. He spoke about the two top crypto assets in a hearing with the Senate Committee on Agriculture, Nutrition, and Forestry on July 9.
He cited a recent case brought by his organization against an Oregon fraudster who used crypto to scam people, in which the judge claimed bitcoin and Ether were commodities. This ruling provided in an Illinois court is the most recent example of these assets classified as commodities.
It is significant because the case involved a $120 million Ponzi scheme, its results capturing the attention of many. The judge, siding with the CFTC in the case, also called other assets the fraudster used in his scheme—Olympus (OHM) and KlimaDAO (KLIMA)—commodities.
Thus, Benham feels it is the right time for the CFTC to take over the enforcement of laws over digital assets that are clearly not securities. In a press release, he spoke about how regulatory inaction and lack of crypto regulation will only amplify the risks associated with the digital assets space.
“I do not believe inaction will quash public interest for digital assets; it will only result in greater risk to our financial markets and investors,” Benham said, further mentioning, “Federal legislation is urgently needed to create a pathway for a regulatory framework that will protect American investors and possibly the financial system from future risk.”
Benham also explained how the CFTC fits into all this, “Market regulators like the CFTC were built precisely for situations we find ourselves in today.” He also criticized the long wait for crypto-related regulations in the US and the government turning a blind eye toward the asset class to delegitimize its existence, “The flawed notion that regulating an asset class legitimizes it misses the point of our responsibilities.”