#behnam

CFTC Chair Rostin Behnam weighs in on crypto regulations

(adsbygoogle = window.adsbygoogle || []).push();

Rostin Behnam, Chairman of the U.S. Commodity Futures Trading Commission (CFTC), emphasized the necessity for a clear regulatory framework in the burgeoning cryptocurrency market during a recent podcast interview with the Intercontinental Exchange (ICE) Aug. 14.

Expressing concerns about the industry’s current ambiguity and vulnerability to potential fraud and manipulation, Behnam stated, “The market seems to want some kind of regulatory framework.”

These comments come as institutional interest in cryptocurrency is on the rise, and market participants seek clarity. “You can predict that institutional demand will likely increase if there is a clear regulatory framework,” he noted. Behnam’s emphasis was on institutions and individual participants who require risk hedging within the crypto environment.

Commodities v. securities

Behnam has commented extensively on the cryptocurrency space in the past, most notably to express his view that many coins, including Bitcoin and Ethereum, ought to be considered commodities.

However, this position is somewhat at odds with that of Securities and Exchange Commission (SEC) Chairman Gary Gensler, who previously mentioned that the vast majority of cryptocurrencies should be categorized as securities and are thus already under existing securities laws. Behnam challenges this view, contending that about 70% of the crypto market should be classified as commodities. He appealed to Congress to enact legislation to provide clearer guidelines on commodity tokens, bolstering the CFTC’s powers in overseeing this sector.

This is not the first time the CFTC Chairman has waded into the crypto regulation debate. In a March 2023 hearing, Behnam declared digital assets like Ethereum and certain stablecoins as commodities, challenging the SEC’s broader classification of cryptocurrencies as securities. This distinction between the two regulatory bodies has long been a matter of contention and will likely continue to shape the regulatory landscape of the cryptocurrency industry.

For now, as institutional and individual interest in the crypto market persists, the calls for clearer, more nuanced, and comprehensive regulatory guidelines grow louder.

(adsbygoogle = window.adsbygoogle || []).push(); #CFTC #Chair #Rostin #Behnam #weighs #crypto #regulations

US CFTC Chair Rostin Behnam Says DeFi Crypto Exchanges Can Be Regulated – Here's the Latest

(adsbygoogle = window.adsbygoogle || []).push();

CFTC Chair Rostin Behnam. Source: Video screenshot/YouTube

Decentralized exchanges (DEXs) and other aspects of the decentralized finance (DeFi) world can be regulated in the US, even though it is “just code,” according to Commodity Futures Trading Commission (CFTC) chair Rostin Behnam.

“It’s easy to suggest, ‘oh there’s no institution, there’s no individual, it’s just code, you can’t regulate that, it’s self-effectuating,’ but that really is the wrong set of questions,” Behnam said on Bloomberg’s Odd Lots podcast this week.

He pointed out that how an exchange is operated is not the main issue, but rather what it offers and who initially set it up, saying:

“It’s really about what are U.S. customers being offered and exposed to. And who is either the individual or group of individuals who set up that entity, that code, to offer those products?”

Behnam further explained that US securities law already covers most digital assets, and said legal precedent “for better or for worse, is the driving force that sits as the foundation of our legal analysis.”

“We’ll continue bringing bad actors to account,” Behnan said, while noting that the agencies that will be tasked with regulating DeFi will be either the CFTC or the Securities and Exchange Commission (SEC).

In the US, the SEC generally regulates the issuance and trading of securities, while the CFTC regulates commodities and derivatives trading. Due to this division of responsibilities, a key issue among regulators has been how various digital assets should be categorized.

In the past, SEC chair Gary Gensler has stated explicitly that Bitcoin is a commodity, but he has refused to go into detail on other digital assets.

In the podcast interview, Behnam also refrained from going into detail on individual digital assets, but said that crypto in general should be regulated like other financial assets.

“For crypto, we have to use the same playbook that we have used in the past as we think about a policy that we construct,” the CFTC chair said.

(adsbygoogle = window.adsbygoogle || []).push(); #CFTC #Chair #Rostin #Behnam #DeFi #Crypto #Exchanges #Regulated #Heres #Latest

Ethereum Price Prediction as CFTC Chief Behnam Again Calls ETH a Commodity – Can ETH Overtake Bitcoin?

(adsbygoogle = window.adsbygoogle || []).push();

Source: TradingView

The price of Ethereum has gained by 5.5% in the past 24 hours, on a day when the cryptocurrency market appears to have shaken off the jitters caused by the CFTC charging Binance with a variety of compliance violations.

ETH is now up by 11% in the last 30 days and by 52% since the beginning of the year, with the coin helped by the news that CFTC Chairman Rostin Behman yesterday reaffirmed his view that it should be regarded as a commodity.

At a time when exchanges, and some token issuers, are facing legal action, this statement from the CFTC’s head has served to highlight the relative safety of investing in ETH, with the token’s rock-solid- fundamentals also helping it to beat most of the top 100 in the past few weeks and months.

And with the Shanghai upgrade due on April 12, it could witness further gains in the near (and distant) future, with institutions potentially lining up to engage in ETH staking.

Ethereum Price Prediction as CFTC Chief Behnam Again Calls ETH a Commodity – Can ETH Overtake Bitcoin?

ETH’s indicators continue to suggest that the coin’s current rally still has some gas left in the tank, even if it has been rising steadily for much of the year (so far).

Source: TradingView

Having opened March close to 30, its relative strength index (purple) is about to pass 60, signaling rising buying momentum.

ETH’s 30-day moving average (red) also shows no immediate sign of stopping its ascent relative to the 200-day average (blue), something which bodes well for further gains in the coming days.

Indeed, based on its current momentum alone, ETH has every chance of reaching $1,900 in the near future, providing the market doesn’t receive any further regulatory shocks. 

This, however, is a real possibility at the moment, what with Coinbase facing likely legal action from the SEC and the aforementioned move by the CFTC to charge Binance with a wide variety of alleged misdeeds.

That said, the aforementioned comments from Behnam suggest that Ethereum itself is safe from any regulatory crackdown.

Not only that, but Ethereum’s fundamentals remain enviably strong, with its roadmap suggesting that more gains could be on the way.

Most immediately, the all-important Shanghai update is now running on the Goerli testnet, with a full rollout due in only a couple of weeks.

Shanghai will enable the withdrawal of staked ETH (including staking rewards), something which is likely to increase bullishness for ETH insofar as it completes the upgrading process begun with last September’s Merge.

Yes, some have claimed that the update will result in a spike in selling pressure, yet this actually very unlikely.

Developers have designed Ethereum’s staking process in a way that sets limits on how many full withdrawals can be processed on a single day.

As of writing, this limit is currently set at 1,575 full withdrawals per day, given that the total active validator count is between 458,752 and 524,288.

Additionally, a significant portion of Ethereum validators are actually sitting on a loss, meaning that many will choose to wait before unstaking (and presumably selling).

This all makes Shanghai a net-positive Ethereum, with some experts expecting it to invite an increase in staking, particularly from institutional investors.

This includes JPMorgan analyst Nikolaos Panigirtzoglou, who, in a research note published in February, predicted that Ethereum’s staking ratio would rise to 60% once Shanghai is complete.

If true, this would mean that around 60% of ETH’s circulating supply would be locked up via staking, and in turn this would increase buying pressure on the coin’s price.

Amplifying this buying pressure is the fact that ETH has become a semi-deflationary token ever since the Merge and EIP 1559, with its protocol now burning more ETH than it issues during busy periods (and Ethereum is becoming increasingly busy with each passing month).

Because of this, ETH has a real chance of passing $2,000 in the next few months, and assuming a more bullish market, it could even near $3,000 by the close of 2023.

From there, a return to its current all-time high of $4,878 could be possible next year, something which could potentially see ETH overtake BTC in terms of percentage gains.

Buy Ethereum Now

Alternatives to Ethereum

ETH remains a very strong cryptocurrency, given its positive momentum in recent weeks and its solid fundamentals.

However, it’s not the only coin in the market with potential, with a variety of newer altcoins also promising above-average gains in the near and more distant future.

The Cryptonews Industry Talk team has studied such coins and created a list of the top 15 cryptocurrencies for 2023, each with good short-term as well as long-term prospects.

This list is regularly updated with new altcoins and ICO projects.

Disclaimer: The Industry Talk section features insights by crypto industry players and is not a part of the editorial content of Cryptonews.com.

(adsbygoogle = window.adsbygoogle || []).push(); #Ethereum #Price #Prediction #CFTC #Chief #Behnam #Calls #ETH #Commodity #ETH #Overtake #Bitcoin

FTX customers want more info on FTX’s plans to sell subsidiaries

While the Ad Hoc Committee does not want to prevent the sales from occurring, it argued it needs to be involved to ensure that customers’ interests are represented.

FTX wants permission to sell FTX Japan and FTX Europe as well as LedgerX

The four businesses FTX wants to sell had only recently been acquired, and lawyers argue this simplifies the sale process.