CFTC: Cryptographic assets other than Bitcoin and Ethereum could be considered commodities
Heath P. Tarbert, Chairman of U.S. Pat. Commodity Futures Commission says that cryptos classified as security tokens can become commodities. The CFTC chief also revealed that Ethereum futures can be launched within the next
Transformation of security tokens to raw material is possible
In his speech at DC Fintech Week on Monday () Chairman Tarbert noted that crypto names for securities and commodities are not set in stone. According to the CFTC boss, a cryptoasset, which is considered a security, can become a commodity and vice versa.
In addition, Tarbert revealed that other cryptos except Bitcoin and Ethereum can be considered commodities. Tarbert also stated that the CFTC is considering the valuation of stablecoins as a raw material. According to Coinmetrics co-founder Nic Carter, the CFTC chairman said he had no legal precedent for such a transformation.
– nic carter (@nic__carter) 21. October 2019
For Tarbert, U.S. Pat. Securities and Exchange Commission (SEC) responsible for determining which cryptos fall under the securities classification. The CFTC chief noted that self-regulatory organizations (SROs) will not dictate how regulators classify virtual assets.
In early October, several major US crypto companies formed the Crypto Ratings Council (CRC) – an independent rating body for the classification of cryptocurrencies.
CFTC is not yet sure about the debate on the crypto exchanges
Aside from the securities and commodities debate, Tarbert said that crypto exchanges are still like the wild west. Much remains to be done to regulate the crypto-trading space, according to the CFTC chairman.
Recently, regulators have begun to insist on full compliance with measures such as know your customer (KYC) and anti-money laundering (AML). These stringent measures have reportedly dampened trade in once-booming markets such as South Korea. For many regulators, these robust regulatory provisions are needed to prevent illegal financial activity.
Text Proof: bitcoinist
Last update: Tuesday, 22. October 2019