Despite existing for over a decade now, categorizing crypto is still a hassle for several governments. While some view these assets as money, a few others continue to label them as securities and commodities. Ethereum [ETH] the world’s second-largest crypto continues to create confusion among investors about its identity. Now, however, Commodity Futures Trading Commission [CFTC] Chair Rostin Behnam decided to step up and suggest that ETH was a commodity.
Speaking at a recent event, Behnam pointed out how his opinion about Ethereum was different from Securities and Exchange Commission [SEC] Chair Gary Gensler’s perception of the altcoin.
Time and again, Gensler steered away from expressing his stance on Ethereum. However, just before the network transitioned into proof-of-stake via the Merge, Gensler hinted that Ethereum could be viewed as a security. In addition to this, Gensler suggested that Bitcoin [BTC] was the only crypto that should be considered a commodity.
Additionally, the XRP community has been hostile to the Ethereum network. This is because, despite being a security, the cryptocurrency supposedly received a free pass. However, the community is still plagued by anxiety over Ether being viewed as security after the Merge.
As seen in the above statement, the SEC’s thoughts did not align with the CFTC’s. This has further caused immense confusion and chaos in the US crypto market.
Will the US crypto market ever gain clarity?
Crypto regulation in the US has been chaotic considering the involvement of a plethora of agencies. Addressing the same Behnam said,
“It’s a pretty cynical view to suggest two agencies can’t figure it out and work together.”
The CFTC chair even pointed out that both agencies would continue to work together to regulate the crypto industry. However, he noted that there were certain gray areas that needed to be touched. This would require the CFTC and the SEC to collaborate on both legal and policy questions in order to find a middle ground.