CFTC Boss Recognizes Many Crypto Tokens As Commodities

• CFTC Boss, Russ Behnam, confirms on CNBC that many crypto tokens are commodities.

In a statement during a CNBC interview, Commodity Futures Trading Commission (CFTC) Boss, Russ Behnam, acknowledged that “under existing law, many of the tokens constitute commodities.”  

“It is figuring out how existing, decades-old law, fits into this new technology that seems to be changing and ultimately needs a new way of thinking around policy and legislating,” says @CFTCbehnam on #crypto. “Under existing law, many of the tokens constitute commodities.” pic.twitter.com/F3JPjWq3wG

— Squawk Box (@SquawkCNBC) December 12, 2023

This direct declaration provides much-needed clarity on the regulatory status of cryptocurrencies in the U.S.  

Figuring out regulations  Russ Behnam delved into the regulatory intricacies facing the crypto industry, stressing the urgent need for legislative action.  

“I think members in Congress are trying to figure out the landscape,” he remarked.  

The regulator acknowledged the challenge of fitting new digital assets into traditional regulatory models.  Behnam emphasized the CFTC’s commitment to market stabilization during the interview. 

See Also: IRS Demands $24 Billion In Unpaid Taxes From FTX

Cracking down on bad actors   The CFTC boss also touched upon the high-profile Binance settlement and the ouster of its CEO.  

“We work together and we feel like we got the bad actor here,” referring to actions taken against Binance and its founder, Changpeng Zhao. 

During the interview, Russ Behnam also predicted that CZ would have to serve some prison time.   “We have over $4 billion in fines on the criminal and civil side…and he will be going to jail,” he said.