The Chair of the Commodities Futures Trading Commission (CFTC) is reportedly saying that only one crypto asset on the market counts as a commodity.
According to a new report by Fortune, CFTC Chair Rostin Behnam says that Bitcoin (BTC), the leading digital asset by market cap, is the only virtual currency that can be considered a commodity, making it fall under the jurisdiction of the regulatory agency.
This marks a change in Behnam’s beliefs as in October, the Chairman said that the leading smart contract platform Ethereum (ETH) may also count as a commodity.
At the time, Behnam said that the top altcoin wouldn’t count as a security despite transitioning from a proof-of-work consensus mechanism to a proof-of-stake one.
Securities don’t fall under the watch of the CTFC and are subject to the U.S. Securities and Exchange Commission’s (SEC) jurisdiction, which is known in the crypto industry for having harsher regulatory methods compared to the CFTC, according to the report.
Behnam goes on to say that the crypto industry desperately needs clear guidelines and regulations in the wake of the multibillion-dollar collapse of prominent crypto exchange platform FTX.
He says that the CFTC can only take limited enforcement actions because it lacks direct oversight when it comes to virtual currencies.
Though the CFTC and SEC have had disputes over which virtual currencies count as securities and which ones as commodities, Behnam has praised the collaboration between the regulatory bodies.
According to Behnam, the worst course of action would be for regulators to do nothing, stating that “inaction is paralysis.”
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