In a statement during a CNBC interview, Commodity Futures Trading Commission (CFTC) Chair Russ Behnam acknowledged that “under existing law, many of the tokens constitute commodities.”
This direct declaration provides much-needed clarity on the regulatory status of cryptocurrencies in the U.S.
Figuring out regulations
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.
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, 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.