CFTC Chair Says 70%–80% of Cryptocurrencies Are Not Securities

It is a Senate Committee hearing on Appropriations taking place today, CFTC Chairman Rostin Behnam said that 70%–80% of all cryptocurrencies are non-securities. Behnam did indeed speak about this asset class and the debate that continues about its classification.

Behnam called the both Bitcoin and Ethereum commodities The hearing will be held. In particular, he referred to an Illinois District Court decision that occurred earlier in the week. The summary judgment, according to the chairman was not a fair one. “reaffirmed that both Bitcoin and Ether are commodities under the Commodities Exchange Act.”

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CFTC chair says most Cryptos are Commodities

It has always been difficult to classify the crypto market in the United States. Asset classes have been classified as commodities or securities. Both sides are very different and impact the way they’re managed.

In the past few years, the industry has experienced an increase in issues with the US Securities and Exchange Commission. This agency regulates the securities market in the United States. The chairman of the agency, Gary GenslerHe was outspoken about his dislike of assets.

Alternatively, CFTC chairman Rostin Behram has stated recently that 70 to 80% all cryptocurrencies in fact are not securities. This would mean that digital assets were commodities and therefore under the CFTC’s governance.

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It’s a fascinating difference. Commodities include goods such as gold, oil, and agricultural products. This is a list of assets that are traded at exchanges based upon their value. Securities are other financial instruments such as stocks and bonds.

Bitcoin and Ethereum have both been confirmed by the US as commodities. These two crypto-based tokens represent the only ETFs available in the US. Moreover, this fact appears to cement their place. Berham believes that cryptocurrencies are not securities, but they still represent the majority of the market.