SEC and CFTC Chairmen Disagree on Ethereum Review

For Gary Gensler, chairman of the US Securities and Exchange Commission, Ethereum is a security and should be under your supervision. However, Rostin Behnam, chairman of the Commodity Futures Trading Commission (CFTC), disagrees.

As for Bitcoin, both agree that it is a commodity i.e. a commodity like gold, sand and wheat. Therefore, Bitcoin must remain free, with its markets overseen by the CFTC.

In short, the difference between Bitcoin and Ethereum is quite simple. Although Bitcoin was created with a fair start i.e. no one made any money from its creation and to this day all developers depend on donations to live on, Ethereum held an ICO at the time, raising funds that are still alive today. be used for project development. .

The big point here is that even two of the biggest names in US regulation cannot reach a consensus on Ethereum, let alone the mere users and investors of this project.

Such confusion was even mocked by Behnam himself this Monday (24) at an event on cryptocurrencies in Manhattan. His speeches were recorded by Fortune.

“It’s rather cynical to suggest that two agencies can’t discover and work together.”

The Future of Ethereum Could Be in the Hands of Two Presidents

Many believe that Ripple (XRP) lost a lot of space in the cryptocurrency market after the SEC sued it in 2020. In the action, the agency said it believes XRP is a security.

The same can happen with Ethereum. After all, Gary Gensler, chairman of the SEC, thinks that ETH is a security, that is, a security. The matter came up again last month after ETH was upgraded to Proof-of-Stake, a model that rewards cryptocurrency holders and no longer miners.

However, Rostin Behnam, chairman of the CFTC, opposed Gensler’s thinking and showed the utter disagreement between the two agencies over Ethereum.

“I suggested that [o ETH] is a commodity, and President Gensler thinks the opposite.”

Since the SEC and the CFTC are the two largest bodies interested in this, we can say that the future of Ethereum is completely dependent on this discussion. After all, it can become free, like Bitcoin, or face fines and even restrictions.

In addition, it is possible that other countries follow the US as an example in this ranking. Still, it’s unlikely anything concrete will happen in the coming months.

“This is the million dollar question. How do we deal with the SEC when a product is in a gray area?”

Finally, both agencies are still waiting for their role on cryptocurrencies. Another stakeholder is the Fed, the US central bank. But it seems that this would only be responsible for inspecting stablecoins.

Source: Live Coins