United States Senator John Boozman has named the largest cryptocurrency exchange by market capitalization Bitcoin (BTC) as a commodity.
In a hearing which was held on December 1st Thursday titled “Why Congress Needs to Act: Lessons Learned from the FTX Collapse,” Boozman explained how BTC functions both as a cryptocurrency and a commodity.
“Bitcoin, although a cryptocurrency, is a commodity. It is a commodity in the eyes of the federal courts and in the opinion of the Securities and Exchange Commission (SEC) chairman. There is no dispute about this,” the Senator started.
Boozman who is a ranking member of the U.S. The Senate Committee on Agriculture, Nutrition, and Forestry, also suggested that any company which permits BTC trade should be regulated by the Commodity Futures Trading Commission (CFTC) stating that without regulations, customers are left at the mercy of predators who want to pounce on them.
Boozman Choose CFTC as Crypto Regulator
Senator Boozman also advocates that the CFTC is the best regulator for the crypto ecosystem.
“If there are exchanges where commodities are traded—be it wheat, oil, or Bitcoin—then they must be regulated. It is that simple. The choice not to regulate leaves consumers at the mercy of those who would prey upon them,” He added “There is no better example of this than the CFTC’s regulation of the futures market, which has proven to be one of the more resilient markets, in large part because of the CFTC’s tried and trusted principles-based regulatory regime.”
The senator did not fail to talk about how now-bankrupt FTX fell citing that the exchange incurred many losses in the US even though it is a foreign firm.
He holds a strong belief that the financial watchdog has the capacity to provide customers protection through the implementation of the standard robust regulatory framework which several markets can imbibe in order to function effectively.
On the other hand, CFTC was once touted by Rostin Behnam, its current chairman, as the regulator which should be put in charge of the cryptocurrency market in the United States. At another time, Christopher Giancarlo, former Chairman of CFTC said that crypto market regulation should be put under the jurisdiction of CFTC instead of with the US SEC or even the US Department of Treasury.