The chairman of the U.S. Commodity Futures Trading Commission (CFTC), Rostin Behnam, has publicly confirmed that bitcoin and ether are commodities, offering a rare moment of regulatory clarity during one of the most turbulent weeks in cryptocurrency history.
TL;DR
- CFTC Chairman Rostin Behnam stated that bitcoin and ether are “for sure” commodities
- The declaration came during a CNBC interview amid the Terra/LUNA market collapse fallout
- A bill in Congress proposes splitting oversight between the CFTC and SEC
- Behnam warned that “there are no customer protections right now in the crypto market”
- Bitcoin traded around $30,323 on May 22, 2022 — Bitcoin Pizza Day
CFTC vs. SEC: The Jurisdiction Debate
Speaking in an interview with CNBC last week, Behnam was asked to comment on a bill making its way through Congress that would assign oversight of security tokens to the Securities and Exchange Commission (SEC) and commodity tokens to the CFTC. Rather than dodging the question, the CFTC chairman was unequivocal.
“Well, I can say for sure … [bitcoin] is a commodity. Ether as well,” Behnam stated, cutting through months of ambiguity about how the two largest cryptocurrencies should be classified under U.S. law.
The distinction matters enormously. If classified as commodities, bitcoin and ether would fall under the CFTC’s regulatory umbrella — a prospect many in the crypto industry prefer over SEC oversight, given the SEC’s more aggressive enforcement approach under Chairman Gary Gensler.
A Rare Moment of Agreement
When pressed on whether there was any disagreement between the two agencies, Behnam was diplomatic. “I wouldn’t say there is disagreement,” he replied, noting that both agencies are simply trying to do what’s best for the market and for investors.
The chairman acknowledged that while the two largest cryptocurrencies are clearly commodities in his view, the broader crypto space contains a mix of asset types. “Within this space, in my view, it makes sense for commodities to be regulated by the Commodity Futures Trading Commission and securities to be regulated by the SEC,” he said, while conceding that “there may be a lot of security coins” alongside “plenty of community coins.”
Customer Protection Gaps Exposed
Behnam’s comments came against the backdrop of one of the most devastating weeks in crypto history. The collapse of Terra’s algorithmic stablecoin UST and its sister token LUNA wiped out approximately $50 billion in value, sending shockwaves through the entire market. Bitcoin, which had been trading above $40,000 just weeks earlier, was hovering around $30,323 on May 22.
The CFTC chairman did not mince words about the fallout. “A lot of people got hurt. A lot of value was lost in the market, and there really are no customer protections right now,” he said, underscoring a fundamental vulnerability that the Terra collapse had laid bare.
Both the CFTC and the SEC want to regulate the crypto sector “thoughtfully,” Behnam concluded, emphasizing the need to protect customers and maintain financial stability. Whether Congress will act on the proposed legislation to clarify jurisdictional boundaries remains an open question — but one that the events of May 2022 have made far more urgent.
Why This Matters
Behnam’s declaration carries weight far beyond a single interview. If Congress enacts the proposed legislation, the CFTC would gain primary oversight of bitcoin and ethereum — the two largest cryptocurrencies by market capitalization. This would fundamentally reshape the U.S. regulatory landscape for digital assets, creating clearer rules for exchanges, custodians, and investors. The timing, coming just days after the Terra/LUNA collapse, signals that regulators are feeling pressure to act. For the millions of investors who lost money in May 2022’s market crash, the promise of “thoughtful” regulation may feel overdue.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments carry significant risk. Always conduct your own research before making investment decisions.
behnam saying btc and eth are commodities ‘for sure’ in may 2022 and then gary g doing the exact opposite for 3 years is the most washington thing ever
The proposed split between CFTC and SEC oversight was actually reasonable. Shame Congress sat on it while the industry got dragged through enforcement actions instead.
^ hard to call it reasonable when both agencies kept claiming jurisdiction over the same tokens. that bill went nowhere precisely because neither wanted to give up power
no customer protections in crypto in 2022 and honestly not much better now. behnam was right about that at least