US Senator John Boozman says bitcoin, while a cryptocurrency, is a commodity in the eyes of federal courts and the chairman of the Securities and Exchange Commission (SEC). He stressed that commodity exchanges, including bitcoin, need to be regulated and the Commodity Futures Trading Commission (CFTC) is the proper regulator for the cryptocurrency spot market.
bitcoin is a commodity
US Senator John Boozman (R-AR), ranking member of the US Senate Committee on Agriculture, Nutrition and Forestry, spoke about bitcoin and cryptocurrency regulation Thursday at the hearing titled “ Why Congress Must Act: Lessons Learned from the FTX Collapse. ” The committee is responsible for oversight of the US commodity markets.
Bitcoin, although it is a cryptocurrency, is a commodity. It is a commodity in the eyes of the federal courts and in the opinion of the chairman of the Securities and Exchange Commission (SEC). There is no dispute about this.
Calling FTX’s collapse “shocking,” the senator said: “Public reporting suggests a complete lack of risk management, conflicts of interest, and misuse of client funds. There is simply no place for such behavior, especially in our financial markets.”
Senator Pushes for CFTC to Regulate Crypto Sector
Senator Boozman proceeded to speak about regulating cryptocurrency and empowering the Commodity Futures Trading Commission (CFTC) as the primary regulator of the cryptocurrency spot market. He is stressed:
If there are exchanges where commodities are traded, be it wheat, oil or bitcoin, then they need to be regulated. It’s that easy. Choosing not to regulate leaves consumers at the mercy of those who take advantage of them.
“The CFTC has consistently demonstrated its willingness to protect consumers through enforcement actions against bad actors,” Senator Boozman continued, adding:
I am confident that the CFTC is the right agency for an expanded regulatory role in the digital commodity spot market.
In August, Boazman and several senators inserted the Digital Commodity Consumer Protection Act (DCCPA) to “entitle the CFTC with exclusive jurisdiction over the digital commodity spot market.” two other bills have filed in Congress this year to make the derivatives regulator the main watchdog for the cryptocurrency industry.
While bitcoin is a commodity, SEC Chairman Gary Gensler has repeatedly said that most other tokens are securities.
What do you make of Senator John Boozman’s comments? Let us know in the comments section.
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