{"id":11468,"date":"2021-08-30T01:54:14","date_gmt":"2021-08-30T01:54:14","guid":{"rendered":"https:\/\/www.buyucoin.com\/crypto-labs\/crypto-assets-securities-or-commodities-commissioner-explains-how-they-are-regulated-in-us\/"},"modified":"2021-08-30T01:54:14","modified_gmt":"2021-08-30T01:54:14","slug":"crypto-assets-securities-or-commodities-commissioner-explains-how-they-are-regulated-in-us","status":"publish","type":"post","link":"https:\/\/www.buyucoin.com\/crypto-labs\/crypto-assets-securities-or-commodities-commissioner-explains-how-they-are-regulated-in-us\/","title":{"rendered":"Crypto Assets: Securities or Commodities? Commissioner Explains How They Are Regulated in US"},"content":{"rendered":"

A commissioner with the U.S. Commodity Futures Trading Commission (CFTC) has detailed how crypto assets are regulated in the U.S. and whether they fall under the jurisdiction of the CFTC or the Securities and Exchange Commission (SEC). \u201cThere has often been a grossly inaccurate oversimplification\u201d of how crypto assets are regulated in the United States, said the commissioner.<\/strong><\/p>\n

How Crypto Assets Are Regulated in the US<\/h2>\n

CFTC Commissioner Dawn D. Stump clarified last week how crypto assets are regulated in the U.S. by the CFTC or the SEC.<\/p>\n

\u201cThe recent growth in popularity of crypto products and other digital assets has drawn much attention to the question of how this new financial asset class is regulated in the United States,\u201d she began, adding:<\/p>\n

There has often been a grossly inaccurate oversimplification offered which suggests these are either securities regulated by the Securities and Exchange Commission, or commodities regulated by the Commodity Futures Trading Commission.<\/p>\n

\u201cThe CFTC does not regulate commodities (regardless of whether or not they are securities); rather, it regulates derivatives \u2014 and this is true for digital assets just as for any other asset class,\u201d Commissioner Stump emphasized.<\/p>\n

\u201cThe CFTC does not have regulatory authority over cash commodities,\u201d she explained, clarifying the derivatives watchdog \u201cregulates futures contracts on commodities, and other derivatives products such as swaps.\u201d This includes \u201cfutures contracts on bitcoin and ether listed for trading on various CFTC-regulated exchanges.\u201d<\/p>\n

The commissioner noted that digital assets that are securities fall under the jurisdiction of the SEC, but \u201cfutures contracts and other derivatives on securities may be regulated by the CFTC or the SEC, or jointly by both.\u201d<\/p>\n

To determine who has the jurisdiction in a specific case, Commissioner Stump said that \u201cAn analysis of Congress\u2019 statutory framework,\u201d the CFTC rules, the SEC rules, and \u201cthe specific characteristics of the product\u201d is required, elaborating:<\/p>\n

Therefore, if a digital asset is a security, further analysis is required to determine where regulatory authority lies for a derivatives product on that digital asset.<\/p>\n

As for whether a particular crypto asset is a security, SEC Chairman Gary Gensler said that the rules are clear. \u201cCertain rules related to crypto assets are well-settled. The test to determine whether a crypto asset is a security is clear,\u201d he said<\/a> early this month.<\/p>\n

However, some people, such as Ripple CEO Brad Garlinghouse, disagree. He is being sued by the SEC over the sale of XRP<\/a>.<\/p>\n

<\/p>\n

Commissioner Stump further noted that the CFTC has \u201cenforcement authority\u201d that \u201cincludes a broader application for anti-manipulation and anti-fraud authority.\u201d This authority extends to even cash commodities which the CFTC does not regulate in order \u201cto protect the integrity of the derivatives markets\u201d overall. An example of this enforcement authority is the action the CFTC took against Bitmex<\/a>.<\/p>\n

The commissioner concluded:<\/p>\n

For a number of years, the CFTC has aggressively used its broader enforcement authority to deter manipulation and fraud involving cash digital assets, even though the CFTC does not regulate them.<\/p>\n

What do you think about how crypto assets are regulated in the U.S.? Let us know in the comments section below.<\/strong><\/em><\/p>\n

Bitcoin News
\nRegulation, Bitcoin derivatives, bitcoin futures, CFTC, cftc crypto regulation, commodity or security, crypto assets, crypto derivatives, Crypto regulation, crypto swaps, Cryptocurrency regulation, SEC, sec crypto regulation, sec crypto rules<\/p>\n","protected":false},"excerpt":{"rendered":"

A commissioner with the U.S. Commodity Futures Trading Commission (CFTC) has detailed how crypto assets are regulated in the U.S. and whether they fall under the jurisdiction of the CFTC or the Securities and Exchange Commission (SEC). \u201cThere has often been a grossly inaccurate oversimplification\u201d of how crypto assets are regulated in the United States,…<\/p>\n","protected":false},"author":0,"featured_media":11469,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[53,3],"tags":[],"class_list":["post-11468","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blockchain-news","category-coin-news"],"_links":{"self":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts\/11468"}],"collection":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/comments?post=11468"}],"version-history":[{"count":0,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts\/11468\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/media\/11469"}],"wp:attachment":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/media?parent=11468"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/categories?post=11468"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/tags?post=11468"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}