In the US, the question of whether cryptocurrencies are securities or commodities is not yet clear, and it remains unclear which institution will regulate and supervise cryptocurrencies. There is a race between the U.S. Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Cond (SEC). However, research shows that the CFTC has the upper hand in the race to regulate and oversee cryptocurrencies. In this context, CFTC chairman Rostin Behnam, who advocates for cryptocurrencies to be under the control of the CFTC, spoke before the Senate Agriculture Committee today.

He noted that in line with the bill submitted by the Senate Agriculture Committee last July, he instructed the CFTC to begin preparing to become its major regulator for the majority of the crypto market. Praising the bill, which allows the CFTC to act quickly to establish control and oversight over cryptocurrencies, Behnam said in his speech:

   “Given the impact of high volatility in the cryptocurrency market on retail investors, volatility highlights the urgent need of the market and investors for regulatory clarity and market protections.”

Rostin Behnam Cftc

As it will be remembered, in July, the Senate Agriculture Committee presented a bill that the CFTC should supervise Bitcoin (BTC) and cryptocurrencies. This bill designates the two largest cryptocurrencies, Bitcoin and Ethereum (ETH), as digital commodities, giving the CFTC the authority to provide direct oversight of these assets. However, the SEC argues that most cryptocurrencies are securities rather than commodities and, as a result, must be registered with the SEC.

In her speech to the committee, the CFTC chair was asked a question from Minnesota Senator Amy Klobuchar about the environmental impact of the energy required in mining cryptocurrencies. Behnam answered this question as follows:

   "We've all heard of research and statistics that an incredible amount of energy is used when mining cryptocurrencies. However, I can say that there was an event with Ethereum last night that would reduce energy consumption. The Merge merger on the Ethereum network is a step in the right direction, but it certainly does not solve the energy problem."