Home CryptocurrencyBitcoin CFTC Chairman Warns of Conflict with SEC Over Prometheum's ETH Game

CFTC Chairman Warns of Conflict with SEC Over Prometheum's ETH Game

by SuperiorInvest

“Both Bitcoin and Ether are commodities,” Commodity Futures Trading Commission Chairman Rostin Behnam testified in a March 6 hearing before the House Agriculture Committee.

Behnam was talking about a decision last month by the SEC's special purpose broker-dealer (SPBD) licensed by Prometheum to provide ETH custody services.

“As I understand it, essentially reading the press and talking to my staff, who contacted the SEC, this was an independent decision by Prometheum,” Behnam responded to a question about his views on the company's plans.

“My understanding is that this was not at all a decision of the SEC, it was an individual decision of the entity [Prometheum].”

Behnam testified that he does not believe the decision aligns with the SEC's view on Ether, adding that how the SEC responds to the Prometheum decision “is obviously very critical.”

“The question is do we have any action by the SEC to essentially validate that?” [Prometheum’s] “This decision, that is, listing Ether as a security, will put our registrants, our exchanges that list Ether as a futures contract, in some kind of non-compliance with SEC rules as opposed to CFTC rules. “Behnam said.

SPBDs registered with the SEC can only custody securities; However, SEC Chairman Gary Gensler has not explicitly said whether ETH is a security or commodity.

Behnam in testimony before the House Agriculture Committee. Source: Youtube

Related: Coinbase Advocates Ether Spot ETFs as Analysts Warn of 'Concentration Risk'

He stressed the need to preserve market integrity, adding that the “conclusion that Ether is a commodity” was a “years-old decision” that has made markets work well.

In previously prepared remarks, Behnam noted that the CFTC would “periodically bump up against the limits” of existing laws due to evolving market and technology.

He cited that increased participation in the cryptocurrency market has “tested the limits of the existing regulatory framework.”

“The lack of legislation addressing the regulatory gap over the commodity digital asset spot market has not hampered the public's enthusiasm for digital assets,” Behnam said. “I continue to believe that Congress must act.”

Magazine: Crypto Regulation: Does SEC Chairman Gary Gensler Have the Last Word?

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