- The majority (70-80%) of tokens in the crypto market are not securities as per Behnam.
- Behnam states that a court in Illinois has recognized Bitcoin and Ethereum as commodities.
The Senate Agriculture Committee recently heard testimony from CFTC Chairman Rostin Behnam, who addressed the topic of digital asset categorization in the context of the crypto market. Bitcoin (BTC) and Ethereum (ETH) were acknowledged as commodities under the Commodity Exchange Act by the U.S. Illinois court, according to Behnam.
Additionally, he brought attention to the fact that, contrary to what SEC Chairman Gary Gensler has said, the majority (70-80%) of tokens in the crypto market are not securities.
Providing Legal Clarity
Moreover, according to Behnam’s testimony, the Illinois court had determined that cryptocurrencies like Bitcoin and Ethereum fall within the purview of the Commodity Futures Trading Commission (CFTC). Also, consistent with the CFTC’s position, this categorization differentiates these leading digital assets from other tokens that may be deemed securities.
With this ruling in place, the CFTC will have more authority to regulate Bitcoin and Ethereum as commodities. Thus, following a well-defined regulatory framework.
Furthermore, Behnam states that a court in Illinois has recognized Bitcoin and Ethereum as commodities. Highlighting the fact that their status has been officially recognized. Also, given the continuing debate over how different digital assets should be classified legally. This clarification is very important for providing legal clarity.
Behnam, speaking about the digital asset market as a whole, said that between 70-80 percent of tokens are not securities. This contradicts what SEC Chairman Gary Gensler has said in the past, which is that the majority of cryptocurrencies are securities. The two regulatory bodies in charge of the financial markets have fundamentally different approaches, as Behnam’s stance shows.
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