John Boozman, a U.S. Senator, has disclosed that the chairman of the Securities and Exchange Commission (SEC) and the federal courts of the United States consider Bitcoin to be a commodity.
While making comments at the hearing related to taking measures in line with the things learned from the epic crash of the FTX crypto exchange, the senator stated that the prosecutors categorize Bitcoin (BTC) as a commodity.
John Boozman Labels Bitcoin as a Commodity
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Boozman added that the crypto exchanges that permit the primary crypto token’s trading should have the implementation of the regulation under the Commodity Futures Trading Commission (CFTC). He disclosed that although Bitcoin is known as a crypto token, it is a commodity. As per him, the federal courts and the SEC chair perceive it as a commodity.
Boozman asserted that this thing is crystal clear without any dispute. Apart from that, he specified that for the exchanges involved in the trading of commodities – whether Bitcoin, oil, or wheat –proper regulation should be implemented.
The senator also revealed that if the regulatory bodies do not take this matter seriously and do not regulate them, the customers will remain dependent on the individuals and entities which would victimize them.
The US senator is of the view that the downfall of the crypto exchange FTX – which was categorized as the top 3rd crypto exchange across the globe – has caused great losses to the consumers living in the United States, even though it was a foreign entity.
According to Boozman, the CFTC counts to be a suitable organization for the regulation of digital commodities taking into account the crypto exchanges offering trading services for Bitcoin.
Senator Recommends CFTC for Bitcoin’s Regulation
In addition to this, he mentioned that sufficient protection could be offered by the CFTC to the consumers through the creation and implementation of progressive and practicable regulatory structures to cover the operations of the markets. He said that the dealing of CFTC with the futures market is a good example in this respect as it has turned out to be a very strong market.
He thinks that this has been due to the endeavors of the CFTC and a regulatory regime based on the reliable principle. CFTC was established in 1974 as an autonomous agency operating under the government of the United States. It regulates the markets of derivatives, including swaps, futures, and other such options. The person presently chairing the CFTC is Rostin Behnam.
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On Thursday, during the earliest oversight hearing of Congress, the CFTC chairman proposed the concept that a threat has been posed by the crypto space to the country’s national security.
He made this statement after attracting considerable criticism from the Senators over the deficiency in the regulation of the respective sector. Behnam moved on to say that it would not be a convenient job to get the crypto space regulated.
As he put it, the U.S. government intends to implement a straight prohibition over all types of crypto assets. Notwithstanding the restrictions and regulations called geofencing, the country had up to two percent of the people who were FTX consumers.
In his words, that was not expected to take place. In this way, he added, people will find a possibility to get exposed to offshore activities and entities even if the US government restricts them.