According to the Chair of the CFTC, Stablecoins and Ether Will Become Commodities

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Commodity Futures Trading Commission Chair has reaffirmed his stance that Ether and stablecoins are commodities in a tug-of-war between the US regulators over control of crypto assets.

At a recent Senate hearing, Commodity Futures Trading Commission (CFTC) Chair again asserted that stablecoins, such as Tether and Ethereum, should come under the purview of the CFTC.

At the March 8 Senate Agricultural hearing, CFTC Chair Rostin Behnam was asked by Senator Kirsten Gillibrand about differing views held by regulator Securities and Exchange Commission (SEC) about whether or not Ethereum and stablecoins should be classified as securities.

In response, Behnam stated that he believes that Ether and stablecoins are, in fact, commodities. “Notwithstanding a regulatory framework around stablecoins, they’re going to be commodities in my view.”

“It was clear to our enforcement team and the commission that Tether, a stablecoin, was a commodity,” he added.

The CFTC has recently become involved in several crypto-related cases. Behnam highlighted the importance of ensuring that those who violate the laws are punished appropriately and brought to justice.

In recent times, the US Commodity Futures Trading Commission (CFTC) filed a lawsuit against FTX founder Sam Bankman-Fried for allegedly violating the Commodity Exchange Act by trading certain digital assets such as Bitcoin (BTC) and Tether (USDT).

The contrasting viewpoints of the market regulators over the regulatory control of crypto assets could lead to a conflict soon.

Though both authorities have publicly voiced their positions, it is still unclear who will eventually take charge of regulating digital assets. This dispute between regulators could undermine global efforts to develop standardized regulatory regimes for digital assets.

Suppose one regulator should gain control over regulatory aspects related to cryptocurrencies such as Ether and stablecoins. In that case, it could lead to divergent approaches across jurisdictions on how these assets should be treated.

The outcome of this battle over regulatory oversight could have far-reaching implications for the future development of cryptocurrency markets worldwide.

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