As we see in the volatile cryptocurrency market, none of the coins can compete with Bitcoin.
Ethereum, the second most popular coin in the crypto exchange, is doing its best to reach BTC. But, still, it can no longer fulfil its dreams.
According to Rostin Behnam, chair of the Commodity Futures Trading Commission (CFTC), only bitcoin (BTC) and not Ethereum (ETH) should be treated as commodities for regulatory reasons.
The idea that BTC is the only cryptocurrency that can be regarded as a commodity is crucial for the crypto industry. It could cause problems for ETH and other tokens in the future.
Additionally, it goes against Behnam’s earlier comments, which he made in October when he claimed that ETH might possibly be a commodity.
Behnam discussed his experience dealing with bitcoin as a regulator at the event and acknowledged that the asset is challenging to govern under the existing system.
According to Behnam, “Bitcoin is unlike any commodity we have dealt with.”
If ETH is instead classified as a security for regulatory purposes, US regulators may be anticipated to come down more severely on ETH, as well as almost all other cryptocurrencies.
Although it’s still unknown exactly how it would impact the Ethereum project and the price of ETH, such a scenario has long been anticipated in Ethereum circles.
Instead of being located in the US, the Ethereum Foundation is registered in Switzerland and provides funding for most of the development that takes place on the Ethereum network.
Additionally, a significant portion of the trading in ETH and other cryptocurrencies takes place on foreign exchanges that are not governed by US regulations.
Hazy Distinctions Between Regulators
The CFTC head acknowledged in his speech that the regulatory grid is an “imperfect system.” Nevertheless, he insisted that it is beneficial for the US regulatory bodies to work together.
The Securities and Exchange Commission (SEC), headed by renowned crypto-critic Gary Gensler, and Behnam’s CFTC are the two most influential organisations for regulating cryptocurrency in the US.
In the past, the SEC controlled the stock market and other spot markets, while the CFTC was responsible for regulating commodity futures trading.
To some extent, the boundaries between the authorities have blurred as a result of bitcoin’s status as a commodity that trades in both spot and futures markets, both onshore and offshore.
Behnam formally requested last year that his agency’s jurisdiction be extended to include the market for digital assets, stating that he would work to “protect customers and increase market resiliency.”
Gary Gensler of the SEC has also stated that he wants the SEC to have more ability to regulate cryptocurrency.
When Behman made the latest remarks on Wednesday, several prominent investors attended the event. Many were famous and popular crypt market traders and investors in the audience.
And a panel discussion was made regarding FTX and other entities.