Commodity and Futures Trading Commission (CFTC) Commissioner, Dawn DeBerry Stump, dispelled the growing misconception regarding the agency’s role in governing Bitcoin (BTC) and cryptocurrencies, in general, by clarifying that they aren’t solely responsible for its regulation. According to Stump, people often over simply the regulation of cryptos by branding them as either securities governed by the Securities and Exchange Commission (SEC) or commodities regulated by them, the CFTC, when in reality, there is more to it than just that. She then added that this misconception amongst the public is growing rapidly that she believes it now needs appropriate correction.
Stump’s Monday statement says that the CFTC is currently in power to regulate and enforce authority over commodities. While not explicitly stating that the agency views digital assets as commodities, Stump clarifies that the CFTC has no authority to regulate them even though they are indeed officially recognized as commodities. What they have regulating power to, as per the commissioner, is the derivatives on digital assets, i.e., BTC and ETH futures contracts currently listed for trading on several CFTC-governed exchanges.
Stump says that the SEC and the Financial Crimes Enforcement Network (FinCEN) are the entities principally responsible for handling digital asset enforcement and regulation in the United States. However, each governing agency has conflicting jurisdictional claims over cryptos, which leads to further confusion amongst the companies trying to abide by the imposed laws and the vast crypto community. This implies that the CFTC commissioner also believes that the US government still needs to iron out the present crypto regulating infrastructure to avoid further confusion that may lead to chaos.
In conclusion, the CFTC commissioner states that to determine the agency’s regulatory authority over digital assets, one should not ask whether such assets are considered security or commodity – but instead ask whether a derivatives product or futures contract is involved.