In a Senate Committee hearing on Appropriations taking place today, CFTC Chairman Rostin Behnam said that 70%–80% of all cryptocurrencies are non-securities. Indeed, Behnam talked about the asset class, and the ongoing debate about their classification status.
Behnam called both Bitcoin and Ethereum commodities during the hearing. Specifically, he referenced a District Court Ruling in Illinois earlier this week. The chairman stated that the summary judgment “reaffirmed that both Bitcoin and Ether are commodities under the Commodities Exchange Act.”
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CFTC Chair Says Most Crypto’s are Commodities
In the United States, the crypto industry has continued to face an issue in how it’s classified. The asset class has often been viewed as a security or a commodity. Yet, both sides have very different ramifications and have a massive impact on how they’re governed.
The industry has seen increased issues with the US Securities and Exchange Commission (SEC) over the last several years. The agency governs securities offerings in the country. However, their chairman, Gary Gensler, has been outspoken in his negative opinion of the assets.
Alternatively, CFTC Chairman Rostin Behnam has recently stated that 70% to 80% of all cryptocurrencies are actually not securities. That would indicate that the digital assets are actually commodities, leaving them under the governance of the CFTC.
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The difference is an interesting one. Commodities are goods like gold, agricultural products, and oil. These are various assets that can be traded on exchanges and trade based on current value. Securities, on the other hand, are financial instruments like stocks and bonds.
Bitcoin and Ethereum are two assets that appear to have been confirmed as commodities in the US. The two tokens are the only crypto-based ETFs in the country. Moreover, that fact seems to solidify their place. For Berham, they represent most of the market, with cryptocurrencies being non-securities.