CFTC Chairman of the United States: Ethereum is the second largest cryptocurrency after Bitcoin and is a commodity

It is reported that Rostin Behnam, chairman of the United States Commodity Futures Trading Commission (CFTC), said that Ethereum is the second largest cryptocurrency after Bitcoin and is a commodity. Rostin Behnam disagrees with Gary Gensler, Chairman of the Securities and Exchange Commission (SEC), who said that “all cryptocurrencies except Bitcoin should be classified as securities”. Rostin Behnam and his SEC counterparts parted ways on the federal jurisdiction of ETH. （decrypt.co）

Interpretation of this information:

In a recent report by Decrypt, Rostin Behnam, the Chairman of the United States Commodity Futures Trading Commission (CFTC), has stated that Ethereum is not only the second-largest cryptocurrency after Bitcoin but also a commodity. This statement of Behnam clashes with that of the Securities and Exchange Commission (SEC) Chairman Gary Gensler, who classified all cryptocurrencies except for Bitcoin as securities.

The fundamental difference between the two opinions seems to lie in their interpretation of Ethereum. Behnam views Ethereum as a commodity because it operates as a decentralized platform for creating and executing smart contracts. He argues that commodities get their value from their utility and Ethereum, like any other commodity, has real-world utility, which can be seen with the numerous projects and platforms built on top of it. On the other hand, Gensler believes that cryptocurrencies, similar to securities, derive their value from speculation and, therefore, should be regulated as securities.

Moreover, Behnam and his SEC counterparts also disagree on the federal jurisdiction of ETH. Behnam believes that the CFTC should be the primary regulatory body for Ethereum since it is traded on futures markets, and the CFTC oversees futures trading. Gensler, however, wants the SEC to have jurisdiction since it is their mandate to regulate securities.

The CFTC Chairman’s statement regarding Ethereum, a prominent cryptocurrency, can have a significant impact on how regulators view and regulate cryptocurrencies. While the SEC has been more cautious in approving blockchain-based financial products, the CFTC has been more receptive to cryptocurrency futures trading, like those of Bitcoin and Ethereum. Thus, Behnam’s opinion can potentially lead to a more favorable regulatory environment for Ethereum and other cryptocurrencies in the future.