CFTC Commissioners Claim The SEC Actually Has No Rights Over Crypto Assets

 Commodity Futures Trading Commission (CFTC) Commissioner Brian Quintenz yesterday uploaded a tweet that caught the attention of the crypto community, in which he explained any crypto commodities and assets are actually under the jurisdiction of his agency.

Just so we’re all clear here, the SEC has no authority over pure commodities or their trading venues, whether those commodities are wheat, gold, oil… .or #crypto assets.

- Brian Quintenz (@CFTCquintenz) August 4, 2021

“Clearly, the SEC has no rights to any commodity or their place of trading, regardless of whether the commodity is wheat, gold, oil,…. or crypto assets. ”

Quintenz’s explanation is closely linked to Securities and Exchange Commission (SEC) chairman Gary Gensler’s statement this week about cryptocurrency industry legislation whenever investment products are considered securities.

Gensler stressed that investor protection is still not enough when it comes to the crypto assets and trading platforms used. As a result, he expects additional powers and resources to protect investors.

However, over the past few years the CFTC has confirmed all crypto assets including Bitcoin (BTC) are commodities. This is clearly stated on the agency's official website: "Virtual currencies such as bitcoin have been designated as commodities under the Commodity Exchange Act (CEA)".

Even in October 2018, the United States (US) District Court for Massachusetts had ruled the CFTC had the power to prosecute cases related to crypto fraud.

The CFTC and the SEC have been working together to manage consumer protection -related issues in consumer investments for a long time.

For example last week, the Investor Protection Act and the Digital Asset Market Structure were introduced in the US. Representative Don Beyer has delegated authority related to digital asset securities to the SEC and CFTC authority over digital assets.

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