CFTC Chairman Establishes Bitcoin and Ethereum as Commodities, Not Securities

Recently, an Illinois court in the United States made an important ruling, confirming that Bitcoin (BTC) and Ethereum (ETH) are commodities and are regulated by the U.S. Commodity Futures Trading Commission (CFTC).

It is reported that CFTC Chairman Rostin Benham announced the decision at a U.S. Senate committee hearing last week, which marks the resolution of the long-standing controversy surrounding the regulatory authority of cryptocurrency.

In his speech at the hearing, Benham made it clear: “The court’s decision once again clarifies the status of Bitcoin and Ethereum as commodities as defined under the Commodity Exchange Act.”

This ruling not only provides a legal basis for the regulatory classification of Bitcoin, but also brings clarity to the regulatory status of Ethereum, ending the long-standing jurisdictional dispute between the CFTC and other regulatory agencies in the field of cryptocurrency regulation.

Court confirms Ethereum’s commodity status

U.S. Commodity Futures Trading Commission (CFTC) Chairman Rostin Benham mentioned a key ruling from the Illinois District Court on July 3 during a Senate hearing. At the time, Judge Mary Rowland found in the ruling that defendant Sam Ikkurty was guilty of fraud for failing to register under the Commodity Exchange Act in a case involving cryptocurrency. It is reported that Ikkurty used "digital asset commodities" including Bitcoin (BTC) and Ethereum (ETH) to recruit investors to join his fund, using annualized returns of up to 15% as bait.

The CFTC’s press release further emphasized that the court’s ruling not only confirmed Bitcoin and Ethereum as objects of supervision by the CFTC, but also included OHM and Klima, two non-Bitcoin virtual currencies, into the scope of commodities. Although the classification of Bitcoin as a commodity has been clearly defined, the regulatory status of Ethereum has been vague before, and the SEC has not made it clear whether it falls within its regulatory scope.

However, a series of recent developments seem to indicate that Ethereum’s status as a commodity has gradually been recognized. In May this year, the SEC approved the listing of Ethereum spot ETFs and defined these products as "commodity-based trust shares" in the approval document. In addition, the SEC ended its investigation into Consensys last month, which originally explored issues such as whether ETH was an unregistered security.

This trend of ETH being treated as a commodity has provided confidence to other cryptocurrency companies, such as VanEck, who believe that Solana (SOL), similar to ETH, should also be classified as a commodity, and accordingly applied for the Solana ETF. This ruling not only brings regulatory clarity to the cryptocurrency industry, but also lays the foundation for future market development and investor protection.

Calling on the CFTC to strengthen supervision of cryptocurrencies

During a Senate committee hearing, CFTC Chairman Rostin Benham made a request to Congress for legislative authorization to strengthen the Commodity Futures Trading Commission’s oversight of cryptocurrencies. Benham advocates that all registered trading participants should be required to disclose their structure and related information before issuing commodity tokens to ensure market transparency and fairness.

Benham further emphasized the importance of establishing a clear framework that clearly distinguishes whether digital tokens are commodities or securities under current law. He pointed out that the U.S. Securities and Exchange Commission (SEC) plays a key role in regulating security digital tokens. Therefore, the CFTC should also have corresponding powers and resources to ensure comprehensive supervision of the cryptocurrency market.

Through such legislative authorization, Benham hopes to create a regulatory environment that is both standardized and balanced, which will not only help protect the interests of investors, but also promote the healthy development of the cryptocurrency industry. He believes that clarifying the classification of tokens will help market participants better understand their legal obligations and responsibilities, while also providing a solid foundation for innovation and expansion in the cryptocurrency market.

Conclusion

The cryptocurrency market is facing a clearer regulatory outlook as an Illinois court affirmed the commodity status of Bitcoin and Ethereum. CFTC Chairman Rostin Benham’s statement and request for legislative authorization signal that the regulator is working to create a more transparent and fair market environment. This development not only provides investors with stronger legal protection, but also lays the foundation for the healthy development of the market.

Looking forward, the cryptocurrency market is expected to become more mature and stable as the regulatory framework continues to improve. This will provide fertile ground for innovation and bring broader investment opportunities to global investors. Let’s hope that with clear rules and positive policy support, cryptocurrencies can realize their full potential and drive the next big leap in fintech.

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