• CFTC Chairman Rostin Behnam has re-emphasized the agency’s position that stablecoins should be classified as commodities and fall under its jurisdiction.
• This is in stark opposition to SEC Chairman Gary Gensler’s statement that all digital assets, aside from Bitcoin, are securities.
• The CFTC and SEC have been wrestling for control over a rising U.S. crypto market lacking a comprehensive federal regulatory framework.
Commodity Futures Trading Commission Re-affirms Stablecoins as Commodity
The Chairman of the Commodity Futures Trading Commission (CFTC), Rostin Behnam, has once again reaffirmed the agency’s position that stablecoins should be classified as commodities and placed under its jurisdiction. At a Senate Agricultural Committee meeting on Wednesday, March 8, the CFTC’s boss re-emphasized this stance while responding to a question raised by New York State Senator Kirsten Gillibrand on the contrasting reports on by the U.S. regulator and its federal counterpart, the Security and Exchange Commission (SEC) the Tether stablecoin.
Regulatory Battle Over Stablecoins
In recent times, the Commodity Future Trading Commission and the Securities and Exchange Commission have been wrestling for control of a rapidly growing U.S. crypto market that lacks a comprehensive federal regulatory framework. Stablecoins, in particular, are one major area of interest, with both U.S. agencies trying to claim regulatory authority over their issuance and trading of these fiat-backed digital assets.
CFTC Position On Stablecoins
Behman said “It was clear to our enforcement team and the commission that Tether, a stablecoin was a commodity.” This recent statement by the CFTC chair is in stark opposition to that of SEC chairman Gary Gensler who claimed in an interview on February 23rd that every other digital asset aside from Bitcoin is a security .
SEC Position On Stablecoins
The Securities and Exchange Commission issued a Wells Notice to stablecoin operator Paxos stating ongoing considerations to sue them on basis of their Binance USD being an unregistered security in February 2021 . The SEC also filed lawsuit against Terraform Labs and its CEO Do Kwon accusing them of orchestrating multi billion dollar security fraud involving algorithmic stablecoin TerraUSD C .
Conclusion
As it stands now , both regulators have strong positions regarding regulation of US Crypto Market but no clear winner between them yet appears likely . With US lawmakers yet to pass any legislation on this issue , there is still some time before we see clear resolution in this matter .