Since FTX went bankrupt, CFTC has been significantly criticized because of its ties to the cryptocurrency exchange and SBF’s plans to make the committee the main body in charge of cryptocurrency.
Is Bitcoin Could Be Viewed As A Commodity?
During an exclusive crypto event at Princeton University, the head of the United States Commodity Futures Trading Commission (CFTC), Rostin Behnam, asserted that only Bitcoin could be viewed as a commodity.
Behnam’s remarks are a sharp departure from his initial remarks from October, in which he said that Ether (ETH) might potentially be seen as a commodity. The head of the CFTC was responding to a query over whether cryptocurrency assets should be treated as commodities and which ones count as securities.
Following intense examination of US regulators and allegations of corruption, the head of the SEC was accused by Republican lawmakers of working with FTX “to achieve regulatory monopoly,” which led to the CFTC chairman retracting his remarks on ETH.
Why Sec Filed A Case Against Ripple
It has taken a while to settle the argument over which cryptocurrencies the law recognizes as commodities. Since Bitcoin is truly decentralized, everyone agrees it lacks security, whereas Ether’s legal status and many other cryptocurrencies have been up for debate. Additionally, the SEC has filed a security action against Ripple.
Because of its connection to the defunct FTX cryptocurrency exchange, the American financial regulator has found itself in hot water in the wake of the collapse.
The Digital Commodities Consumer Protection Act (DCCPA), a proposed Senate bill, was expected to give the CFTC supervision authority. The CFTC chief received heavy criticism for the same but justified the commission’s actions by arguing they didn’t have the luxury of waiting.
Behnam cited the committee’s limited authority for supervision and decried the “matrix of regulators” as a flawed structure. He urged for more communication between the numerous regulatory authorities to create strong regulations.
On December 1, the head of the CFTC is scheduled to testify before a congressional committee about the failure of the now-bankrupt cryptocurrency exchange FTX and the lessons discovered from the mishap.
Breaking: 8 Congress Members tried to stop the SEC from inquiring into FTX by questioning the SEC's authority to inquire about Crypto
5 of those 8 members also received campaign donations from FTX, ranging from $2,900 to $11,600
— Nancy Pelosi Stock Tracker ♟ (@PelosiTracker_) November 25, 2022
Is Cftc A Major Crypto Regulatory Organization?
Many in the crypto community have questioned the previous CEO, Sam Bankman- Fried’s tight relationships with US lawmakers and his lobbying efforts to make the CFTC the major crypto regulatory organization. According to a recent story, eight US congressmen allegedly tried to block the SEC from looking into FTX.