The SEC's unclear and largely stringent stance on crypto has been a problem for the industry for years.
The agency has sued almost every major company in the sector over securities law violations.
In a recent hearing at an Illinois court this week, CFTC chair Rostin Behnam asserted that 70% - 80% of cryptocurrencies are NOT securities.
This contrasts SEC Chair Gary Gensler's outlook on crypto on several occasions in the past.
The CFTC might soon take over crypto regulation.
The "security versus commodity" argument has been one of the biggest sources of turmoil in the crypto space for years now, especially under the oversight of the US Securities and Exchange Commission and its current chair, Gary Gensler.
In the last five years, we have seen several companies, from Kraken to Coinbase, and individuals, from Changpeng 'CZ' Zhao to Brad Garlinghouse, sued, investigated, or invited for questioning several times.
However, in one of the biggest (and most confusing) developments in the crypto industry, Rostin Behnam, Chair of the Commodity Futures Trading Commission, has declared that 70-80% of crypto assets are NOT securities.
This directly contradicts Gensler's stance on crypto in several interviews.
Here are the major details of these developments and what you should know.
Fox Business reporter Eleanor Terrett drew attention to Behnam's comments on crypto in a recent tweet after one of Behnam's hearings at an Illinois court this week.
Behnam reportedly stated that "70-80% of the crypto market are non-securities" while emphasizing the need for clear and balanced frameworks when regulating crypto.
Behnam stated that an agency that "oversees trillion dollar markets to have to regulate a market it does not have jurisdiction over and does not get funding for" puts both markets at risk.
This emphasized the need for collaboration between the SEC and CFTC amid clear guidelines to help the industry grow and remain stable.
Gensler's stance on the crypto market's offerings aside from Bitcoin is no secret now.
This makes it all the more confusing because the chairs of both of these enforcement agencies have publicly stated differing views on crypto. Gensler even recently told the New York Magazine that "at the core," most tokens are securities because "there's a group in the middle, and the public is anticipating profits based on that group.”
Interestingly, though, the Illinois Northern District Court supports Behnam's perspective on crypto.
Eleanor Terrett reports that the court declared Bitcoin and Ethereum commodities, along with lesser-known altcoins like Olympus (OHM) and KlimaDAO (KLIMA), under the Commodity Exchange Act.
Senator Roger Marshall asked Behnam: "Wouldn't it be simpler if we put this whole thing (crypto regulation) under the CFTC's jurisdiction?"
To which Behnam affirmed, saying, "I speak for myself, but I'd be happy to do that. I think we have the expertise and the capacity." before stating that there might be a need for some firmer " definitional changes" to what a security is and what a commodity is.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information but will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.