The Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) both claim jurisdiction over the world of cryptocurrencies.
According to a CFTC commissioner, the SEC does not regulate raw materials, including crypto assets, or their trading venues. Brian Quintenz of the US Commodity Futures Trading Commission pointed out Wednesday that pure commodities, including crypto assets, are the jurisdiction of his agency.
The SEC and the CFTC regulate crypto assets
Christopher Giancarlo, the former chairman of the Commodity Futures Trading Commission, claimed that the CFTC was the only U.S. regulator with experience managing bitcoin and cryptocurrency markets.
On Wednesday, Brian Quintenz, commissioner of the Commodity Futures Trading Commission (CFTC), stated on Twitter that cryptocurrencies like Bitcoin (BTC) should be regulated by the CFTC rather than the Securities and Exchange Commission (SEC).
Just so we are all clear here, the SEC has no authority over pure raw materials or their trading venues, regardless of whether these raw materials are wheat, gold, oil … or #Crypto Financial assets.
– Brian Quintenz (@CFTCquintenz) 4th August 2021
Quintenz’s comments come just half an hour after former CFTC chairman Christopher Giancarlo claimed on Twitter that the CFTC was the only U.S. agency experienced in overseeing the Bitcoin and digital currency markets.
According to Quintenz, cryptocurrencies are commodities and therefore fall under the jurisdiction of the CFTC, unlike securities, which are regulated by the Securities and Exchange Commission.
“To be clear whether it is wheat, gold, oil or cryptocurrency investments, the SEC has no control over pure commodities or their trading venues.” he said.
Only one US regulator has experience regulating markets for #Bitcoin & #Crypto and it is not @SECGov. it is @CFTC. If #BidenAdministration is serious about sensible # Cryptocurrency #Regulation, it has to designate a CFTC #Chairman.
– Chris Giancarlo (@giancarloMKTS) 4th August 2021
If the Biden government is serious about sensible regulation of cryptocurrency, it must appoint a CFTC chairman, according to Giancarlo.
SEC chairman Gary Gensler recently called for greater regulatory scrutiny of the crypto business to expand regulatory reach to decentralized exchanges, which could explain the new statements.
In an interview, Gensler stated that the SEC wants to put safeguards in place for crypto investors in the United States and said: “If anyone wants to speculate, that is their option, but it is our job as a nation to protect these investors from fraud.”
Since the SEC ruled that Bitcoin and Ether (ETH) were not securities, there has been a lot of discussion about what forms of digital assets should be covered by the agency, according to Gensler.
Quintenz’s testimony was later endorsed by the US House of Representatives Committee on Agriculture, a standing committee of the US House of Representatives. According to the committee’s official Twitter account, crypto is “bigger than the SEC,” and Congress “needs to clear traffic rules to protect investors and innovations in the digital economy.”