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The Chairman of the Commodity Futures Trading Commission (CFTC), Rostin Benham, made a comment recently on the status and class of crypto assets, fueling the turf war between the CFTC and the Securities and Exchange Commission (SEC).
Not a Security
Earlier today, Benham appeared before the Senate Agriculture Committee. The CFTC head discussed the classification of crypto assets and stated that neither Bitcoin (BTC) nor Ethereum (ETH) are securities.
He referred to the ruling by the US Illinois court, which states that BTC and ETH are commodities under the Commodity Exchange Act. He went on to state that 70-80% of the crypto assets in the market are “not securities.”
The debate surrounding the classification of crypto assets is as old as its existence, as the novelty of blockchain technology has left lawmakers and regulatory authorities perplexed. For a long time, the SEC, CFTC, and the Federal Trade Commission (FTC) have been fighting for the helm of the crypto asset regulator.
Responding to Senator Marshall’s question about whether it would be simpler to place crypto assets under the jurisdiction of CFTC, Benham stated,
🚨CFTC Chairman Behnam says an Illinois court confirmed that $BTC and $ETH are digital commodities under the Commodity Exchange Act.
— Eleanor Terrett (@EleanorTerrett) July 10, 2024
“I speak for myself but I’d be happy to do that. I think we have the expertise and the capacity.”
The comments from Benham come weeks after the US House of Representatives passed the Financial Innovation and Technology for the 21st Century Act (FIT21). This act aims to establish a regulatory framework for the crypto market and place the CFTC as the primary regulatory body.
However, SEC Chair Gary Gensler has opposed the bill, stating that FIT21 could lead to regulatory gaps.
Whether the CFTC or SEC has the power to regulate the crypto space is unclear. However, their comments continue to have a nearly invisible impact on crypto assets.
Also Read: Bitcoin Recovery Influences ETF Inflow; BTC Breaches $59k
Impact on Crypto Assets
Ripple (XRP), one of the most debated altcoins over the last two years, owing to its legal battle against the SEC, exhibited no change following this comment. Like other crypto assets, it is following Bitcoin’s lead, which has not been explicitly bullish.
Presently trading at $4.33, the altcoin is barely holding above the critical support of $0.41. The recent drawdown also resulted in major outflows, as noted in the Chaikin Money Flow. This indicator hit a 14-month low at the end of June and is noting an uptick presently.
XRP/USDT 3-day chart
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Once the indicator crosses the neutral line, inflows can be considered active in the market, potentially pushing the price up as well. XRP price crossing the $0.48 barrier would also confirm the beginning of recovery.
Also Read: Report: Morgan Stanley to Approve Bitcoin ETFs for All Clients by August