During the hearing on Wednesday, the Commodity Future Trading Commission (CFTC) chair elaborated that despite Bitcoin, several digital assets, including Ethereum and Stablecoins, are falling under commodity.
CFTC Chair Rostin Behnam told the Senate Agriculture Committee on March 8 that the world’s second-largest cryptocurrency, Ethereum, is a commodity.
Amid the hearing, Behnam stated before the Senate Agriculture Committee, “I’ve made an argument that Ethereum is a commodity. It’s been listed on the CFTC exchange for quite some time.”
According to Behnam, this provides the CFTC with a “direct jurisdictional hook” for policing Ethereum’s futures and any underlying market.
As per the CFTC chairman, the exchange has to provide its clearance before any ETH future derivative product can be listed on a platform under its regulation. He added, “If we did not feel strongly that it was a commodity asset”, we would not have permitted Ethereum futures to be offered on a CFTC marketplace.
Rostin Behnam stated that after carefully investigating Tether, the enforcement team and commission found it an illicit commodity. He said that it determined that it was necessary to move “swiftly” to regulate the company, which resulted in a $42.5 Million settlement in late 2021.
In the middle of the Senate Agriculture Committee hearing, CFTC’s Behnam expressed all these statements in responding to inquiries from Senator Kristen Gillibrand.
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