CFTC Chairman Rostin Benham Believes Bitcoin and Ether Are Commodities, Should Fall Under His Agency's Purview

Commodity Futures Trading Commission (CFTC) Chairman Rostin Benham noted that bitcoin and Ether are commodities and should fall under the purview of his agency.

The head of the Commodity Futures Trading Commission (CFTC) has stated once again that bitcoin and ether are commodities and should be regulated by his agency.Rostin Benham, chair of the CFTC, discussed the two top cryptocurrencies in a hearing with the Senate Committee on Agriculture, Nutrition, and Forestry on July 9.

He pointed to a recent case brought by the CFTC against an Oregon fraudster who used crypto to scam people, in which the judge stated that bitcoin and ether are commodities. This ruling, which came in an Illinois court, is the latest example of these assets being classified as commodities.

The case is noteworthy because it involved a $120 million Ponzi scheme, the outcome of which has attracted widespread attention. The judge in the case, who sided with the CFTC, also classified other assets used by the fraudster in his scheme—Olympus (OHM) and KlimaDAO (KLIMA)—as commodities.

As a result, Benham believes that the time has come for the CFTC to take over the enforcement of laws governing digital assets that are clearly not securities. In a press release, he discussed how regulatory inaction and the absence of crypto regulation will exacerbate the risks associated with the digital assets sector.

“I do not believe inaction will quash public interest for digital assets; it will only result in greater risk to our financial markets and investors,” Benham said, adding later that “federal legislation is urgently needed to create a pathway for a regulatory framework that will protect American investors and the financial system from future risk.”

Benham also explained how the CFTC fits into the picture: “Market regulators like the CFTC were built precisely for situations we find ourselves in today.” He went on to criticize the lengthy delay in crypto regulation in the US and the government’s attempt to ignore the asset class in order to delegitimize its existence: “The flawed notion that regulating an asset class legitimizes it misses the point of our responsibilities.”