Regulation
CFTC Chair Claims 70-80% of Crypto Are Non-Securities
Rostin Behnam, the Chairman of the CFTC has recently appeared before the Senate Agriculture Committee to discuss the classification of digital assets in the cryptocurrency market. Behnam mentioned that the U.S. Illinois court had recognized Bitcoin (BTC) and Ethereum (ETH) as commodities under the Commodity Exchange Act.
Furthermore, he pointed out that 70-80% of tokens in the crypto market are not securities, which is the opposite of what SEC Chairman Gary Gensler has stated about most cryptocurrencies being securities.
BTC and ETH Classified as Commodities
Behnam in his testimony noted that the Illinois court had ruled that Bitcoin and Ethereum are commodities that are regulated by the CFTC. This classification is in line with the CFTC’s viewpoint and makes a clear distinction between these top digital assets and other tokens that might be classified as securities.
According to Fox reporter Eleanor Terrett, Behnam, chairman of the Commodity Futures Trading Commission (CFTC), said that the Illinois court confirmed that BTC and ETH are classified as digital commodities. He also pointed out that 70-80% of assets in the crypto market are…
— Wu Blockchain (@WuBlockchain) July 10, 2024
This court affirmation enhances the CFTC’s jurisdiction over BTC and ETH since the two are considered commodities and there is a clear guideline on how they will be regulated.
According to Behnam, “The Illinois court has established that Bitcoin and Ethereum are commodities,” stressing on the legal recognition of this status. This confirmation is crucial for legal certainty, particularly in light of the ongoing discussion about the legal classification of various digital assets in the market.
70-80% of Crypto Are Non-Securities
Addressing the broader digital asset market, Behnam asserted that 70-80% of tokens are non-securities. This statement challenges SEC Chairman Gary Gensler’s previous assertion that most cryptocurrencies are securities. Behnam’s position underscores a significant regulatory divergence between the two agencies responsible for overseeing the financial markets.
While giving his testimony, Behnam pointed out that new legal mandates are required for the CFTC to enforce its control over non-security tokens and to offer adequate protection to the investors.
He pointed out that there are regulatory gaps for these assets that make up the majority of the market capitalization. Behnam said,
“Given the risks that this unregulated market poses to U. S. investors, I have consistently and publicly called for new legislative authority for the CFTC. “
CFTC Chair Calls for Federal Legislation
According to the CFTC chair, during his time in the digital asset market, he has seen it transform and go through phases of high volatility and many scandals. He also raised concerns over inadequate legislation to safeguard investors against fraud and other risks in the market. Concurrently, he also made an appeal to Congress to quickly pass laws that will enable the CFTC to effectively govern the digital asset market.
Subsequently, he stressed that if such laws are not put in place, the public interest in the digital assets will persist and therefore, pose threats to financial markets and investors. ”The course we are on right now cannot be sustained,” Behnam said, calling on Congress to act at the earliest opportunity to protect the American investors and the overall financial system.
In addition, the CFTC’s chair testimony also discussed some of the issues that the CFTC has encountered in regulating the digital asset market. Consequently, he pointed out that the firm is ready to collaborate with other agencies and all stakeholders to formulate a comprehensive plan on how to regulate the market and protect investors.
Read Also: Anthony Pompliano Debunks Bitcoin Rally Hopes Tied To Trump’s Win
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
The U.S. Securities and Exchange Commission (SEC) has formally acknowledged the filing for Fidelity’s spot Solana (SOL) Exchange-Traded Fund (ETF).
This marks a key development in the financial industry, as Fidelity seeks to list its Solana ETF on the Cboe BZX Exchange. The acknowledgment comes after Fidelity submitted a proposed rule change, paving the way for the potential approval of the product.
Fidelity’s Spot Solana ETF Proposal
The SEC’s acknowledgment follows Fidelity’s filing to list and trade shares of the Fidelity Solana Fund under the Cboe BZX Exchange. The proposed rule change, initially submitted on March 25, was later amended on April 1, 2025, to clarify certain points and add additional details.
The amended proposal aims to list the Solana ETF under BZX Rule, which pertains to commodity-based trust shares. According to the Cboe BZX Exchange, Fidelity plans to register the shares with the SEC through a registration statement on Form S-1.
Fidelity’s experience with crypto ETFs, having launched the Fidelity Wise Origin Bitcoin Fund (FBTC) and the Fidelity Ethereum Fund (FETH), has prepared it for this new initiative. FBTC has drawn substantial interest, accumulating nearly $17 billion in assets, while FETH currently manages around $975 million.
This Is A Developing News, Please Check Back For More
Kelvin Munene Murithi
Kelvin is a distinguished writer with expertise in crypto and finance, holding a Bachelor’s degree in Actuarial Science. Known for his incisive analysis and insightful content, he possesses a strong command of English and excels in conducting thorough research and delivering timely cryptocurrency market updates.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
The U.S. Senate Banking Committee has voted to approve Paul Atkins’ nomination for the role of Chair of the Securities and Exchange Commission (SEC). The vote, which took place on Thursday, passed with a narrow margin of 13-11, along party lines.
Paul Atkins, nominated by President Donald Trump, now moves one step closer to taking over the top regulatory position at the US SEC.
Senate Banking Committee Approves Paul Atkins Nomination
Paul Atkins’ nomination for SEC Chair has received approval despite sharp opposition from Democratic members of the Senate Banking Committee. The vote was entirely split, with Republicans supporting Atkins and all Democrats opposing the decision.
This partisan divide highlights the contentious nature of Atkins’ confirmation, which had been under scrutiny for several reasons.
The committee’s approval now clears the path for Atkins to proceed to the full Senate for a final confirmation vote. Given the Republican-controlled Senate, it is widely expected that Atkins will secure the necessary votes to take over the SEC leadership. With Republicans holding a 53-47 majority in the Senate, the confirmation process is anticipated to move forward swiftly.
This Is A Developing News, Please Check Back For More
Kelvin Munene Murithi
Kelvin is a distinguished writer with expertise in crypto and finance, holding a Bachelor’s degree in Actuarial Science. Known for his incisive analysis and insightful content, he possesses a strong command of English and excels in conducting thorough research and delivering timely cryptocurrency market updates.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Cryptocurrency exchange Kraken has obtained a Restricted Dealer registration in Canada. The registration comes after completing a pre-registration undertaking (PRU) process with Canadian authorities.
The exchange has also announced the appointment of Cynthia Del Pozo as its new General Manager for North America. Del Pozo will oversee Kraken’s growth initiatives in Canada.
Kraken Completes PRU Process In Canada
Kraken’s Restricted Dealer registration marks the completion of a thorough pre-registration undertaking (PRU) process with Canadian regulators. The registration places Kraken under the supervision of the Ontario Securities Commission (OSC). This oversight ensures users have access to secure crypto products within a properly regulated local ecosystem.
According to the Canadian Securities Administrators (CSA), the Restricted Dealer registration is one of eight firm registration types in Canada. This particular classification is used for firms that “do not quite fit under any other category.” It also comes with specific requirements and conditions set by securities regulators.
Kraken’s regulatory achievement comes during a period of change in the Canadian crypto sector. Just months earlier, competitor Gemini exchange announced its departure from the Canadian exchange market by the end of 2024. This was a move that surprised many and raised questions about cryptocurrency regulation clarity in the country.
Kraken Introduces New Canadian GM
Del Pozo has joined Kraken to lead its Canadian operations as the new General Manager for North America. She has nearly 15 years of experience in corporate development, operations, and fintech consulting. Del Pozo will help to guide Kraken’s expansion across Canada during this important phase of crypto’s development in the region.
“Canada is at a turning point for crypto adoption, with a growing number of investors and institutions recognizing digital assets as a vital part of the financial future. I’m thrilled to join Kraken’s mission at this critical moment, and to lead our expansion efforts, ensuring we continue to serve our clients long-term with innovative and compliant products,” said Del Pozo.
In her role, Del Pozo will focus on strengthening Kraken’s regulatory relationships and also scaling the company’s presence throughout North America.
Del Pozo also commented on the registration achievement: “This Restricted Dealer registration is testament to the high bar Kraken has always set for consumer protection, client service, and robust security. We’re excited to continue expanding our world-class investment platform and to deliver innovative products that provide real-world utility to Canadians.”
The Exchange’s Continued Growth In Canada
Over the past two years, the cryptocurrency exchange has shown steady expansion in Canada while working through the PRU process with regulators. During this period, the exchange has doubled its team size and monthly active users.
According to the official blog post figures, the firm now has more than $2 billion CAD in total client assets under custody. Kraken has also increased support for some of the most popular cryptocurrencies. It provides several CAD spot trading pairs that enable Canadians to trade crypto without paying expensive foreign exchange fees.
According to Innovative Research Group’s 2024 Investor Survey, 30% of Canadian investors currently own or have owned cryptocurrencies. Likewise, a KPMG Canada survey discovered that 30% of Canadian institutional investors now have exposure to cryptocurrencies, which means widespread adoption across investor types.
Vignesh
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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