US Senator John Boozman has clarified that Bitcoin is a commodity, according to the chairman of the Federal Courts. He pointed out that all commodity exchanges, including Bitcoin, must be regulated and that the Commodity Futures Trading Commission (CFTC) is the appropriate regulator for the cryptocurrency spot-market.
Bitcoin Is A Commodity – US Senate
US Senator John Boozman (R-AR), the ranking US member of the Senate Committee On Agriculture, Nutrition Forestry, discussed Bitcoin and Cryptocurrency Regulation during a hearing on Thursday. Titled “Why Congress Must Act: Lessons Learned from the FTX Collapse.” The oversight committee for the US commodity markets is in charge.
He stated:
Cryptocurrency is used to store currency, but it can also be used to purchase other commodities. It It is seen as a commodity by the federal courts, and the chairman of the Securities Exchange Commission (SEC). This This is not up for debate.
The senator described the FTX collapse as “shocking” and that “Public Reporting indicates a complete lack in risk management, conflicts, and misuses of client funds. There Such behavior is not appropriate, especially in the financial markets.
Senator Pushes For CFTC To Regulate Crypto Sector
Senator Boozman then spoke about the regulation of cryptocurrencies, noting that the Commodity Futures Trading Commission (CFTC) is the primary regulator of cryptocurrency spot markets. He This is why it is so important:
If Exchanges are places where commodities can be traded. It’s It’s that simple. Without regulation, consumers are at the mercy of those who would profit from them.
“The CFTC has consistently demonstrated its willingness to protect consumers through enforcement actions against bad actors,” Senator Boozman continued, adding:
I believe that the CFTC is the correct agency to extend its regulatory role in the digital commodity spot markets.
In August, several senators introduced the Digital Commodity Consumer Protection Act (DCCPA) to “provide the CFTC with exclusive jurisdiction over the digital commodity spot market.” In addition to these bills, there have been many more put forward by Congress this year to make the derivatives regulator the primary watchdog of the cryptocurrency sector.
While Chairman Gary Gensler has repeatedly said that Bitcoin is a commodity, the SEC maintains that all other tokens are securities.
What do you make of Senator John Boozman’s comments? Let us know what you think in the comments section.
Image credit: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is intended for informational purposes only. It does not constitute a solicitation or offer to buy, sell or recommend any product, service, or company. Bitcoin.com is not a provider of investment, tax, legal, or accounting advice. Neither the author and the company are not responsible for any loss or damage caused or alleged caused by the use or reliance of any content, goods, or services in this article.