US Senator John Boozman says bitcoin, although a cryptocurrency, is a commodity in the eyes of the federal courts and the chairman of the Securities and Exchange Commission (SEC). He emphasized that exchanges where commodities are traded, including bitcoin, must be regulated and the Commodity Futures Trading Commission (CFTC) is the right regulator for the crypto spot market.
Bitcoin is a commodity
U.S. Senator John Boozman (R-AR), ranking member of the U.S. Senate Committee on Agriculture, Nutrition and Forestry, spoke about bitcoin and crypto regulation Thursday at the hearing titled “Why Congress Needs to Act: Lessons Learned from the FTX Collapse.” The committee is responsible for the supervision of the American commodity markets.
Bitcoin, although a cryptocurrency, is a commodity. It is a commodity in the eyes of the federal courts and of the Securities and Exchange Commission (SEC) chairman. There is no dispute about this.
Calling the FTX collapse “shocking,” the senator said: “Public reports indicate a complete lack of risk management, conflicts of interest and misappropriation of client funds. There is simply no place for such behavior, especially in our financial markets.”
Senator pushes for CFTC to regulate crypto sector
Senator Boozman went on to talk about crypto regulation and strengthening the Commodity Futures Trading Commission (CFTC) as the primary regulator of the crypto spot market. He emphasized:
If there are exchanges where commodities are traded – be it wheat, oil or bitcoin – then they must be regulated. It’s that simple. The choice not to regulate leaves consumers at the mercy of those who would prey on them.
“The CFTC has consistently demonstrated its commitment to protecting consumers through enforcement actions against bad actors,” Senator Boozman continued, adding:
I am confident that the CFTC is the right agency for an expanded regulatory role in the digital commodity spot market.
In August, Boozman and several senators introduced the Digital Commodities Consumer Protection Act (DCCPA) to “strengthen the CFTC with exclusive jurisdiction over the spot market for digital commodities.” Two other bills have been introduced in Congress this year to make the derivatives regulator the primary watchdog for the crypto sector.
While bitcoin is a commodity, SEC Chairman Gary Gensler has said repeatedly that most other tokens are securities.
What do you think of Senator John Boozman’s comments? Let us know in the comments section below.
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