Posted 9 months ago | by Catoshi Nakamoto
An attorney Jeremy Hogan with Hogan & Hogan law firm asked U.S. Security and Exchange Commission (SEC) boss Gary Gensler on Twitter whether or not Ethereum (ETH) was a security. Gensler didn’t respond but Commodity Futures Trading Commission (CFTC’s) Commissioner Brian Quintenz did. Interestingly, this also comes as President Joe Biden is expected to announce a new head who will run the CFTC.
Hogan asked on behalf of the “millions of Americans who own Ether,” whether or not it was a security. Hogan expressed on Twitter, we would like to know a “simple question: is Ether a security? Yes, or, NO.”
A futures contract on a security is in both the SEC’s and @CFTC’s jurisdiction. A futures contract on a pure commodity is only in the CFTC’s jurisdiction. There is a currently a futures contract on #ETH. It is only under the CFTC’s purview which makes ETH a non-security commodity
— Brian Quintenz (@CFTCquintenz) August 14, 2021
Quintenz who previously stood against the SEC replied that “a futures contract on a security is in both the SEC’s and CFTC’s jurisdiction. A futures contract on a pure commodity is only in the CFTC’s jurisdiction.” He added, “There is currently a futures contract on ETH. It is only under the CFTC’s purview which makes ETH a non-security commodity.”
That is why Ethereum (ETH) should not be treated as a security, Quintenz concluded.
As Bitboy Crypto reported, Quintenz previously tweeted attacking the SEC’s authority to regulate digital assets. Quintenz argued that the U.S. Securities and Exchange Commission (SEC) does not have jurisdiction over “pure commodities or their trading venues,” including “crypto assets.”
This followed a comment by U.S. SEC Chairman Gary Gensler, who stated that stock tokens and “stable value tokens backed by securities” qualify as securities, implying they must be registered and abide by existing federal law.
The U.S. House Committee on Agriculture retweeted Quintenz’s tweet and stated that “#crypto is bigger than the SEC,” urging Congress to “write the rules … to protect investors AND innovation.”
Congress needs to write the rules of the road to protect investors AND innovation in the digital economy. https://t.co/vIzND3KY28
— House Ag GOP (@HouseAgGOP) August 4, 2021
In his own tweet, the former CFTC Chairman Christopher Giancarlo declared the CFTC was the only agency with the experience to regulate the cryptocurrency markets. Giancarlo urged the CFTC to nominate a new chair and begin to work on “sensible cryptocurrency regulation.” It appears that Biden will be taking the former Chairman’s advice, appointing Rostin Behnam to be named as the new CFTC chair.
Behnam was appointed as the CFTC’s acting chairman in January, however, he has yet to be nominated or officially confirmed by the Senate.
Although, according to Bloomberg, Behnam’s nomination is expected to be officially announced in the coming weeks. Behnam stressed the importance of adhering to “a culture of compliance” in a statement about the recent case against BITMEX.
“This case reinforces the expectation that the digital assets industry, as it continues to touch a broader pool of market participants, takes seriously its responsibilities in the regulated financial industry and its duties to develop and adhere to a culture of compliance,” Behnam said.
There appears to be growing infighting between the CFTC and the U.S. SEC over cryptocurrency regulation, as both argue over jurisdiction on the digital asset market. Besides crypto, the CFTC oversees a majority of the $582 trillion global derivatives market.
Bitcoin is currently trading at [FIAT: $46,691.14] DOWN -0.7% in the last 24 hours according to Coingecko at the time of this report.