The Commodity Futures Trading Commission (CFTC) head has expressed worries about the possible conflicts in the U.S. market rules related to Ethereum (ETH) custody.
The Securities and Exchange Commission (SEC) is now faced with a decision on whether to categorize ETH as a security, after SEC-registered firm Prometheum filed a request for approval to offer ETH custody services.
CFTC Chairman Rostin Behnam stressed in a hearing before the House Committee on Agriculture that clear crypto regulations are important. Behnam urged Congress to pass the Financial Innovation and Technology for the 21st Century Act (FIT Act), which may create a regulatory framework for digital assets within one year.
Rostin Behnam, said, “The lack of legislation addressing the regulatory gap over the digital commodity asset spot market has not hindered the public’s enthusiasm for digital assets.”
Behnam pointed out the lack of regulatory clarity, particularly on BTC and ETH. The FIT Act is designed to demarcate the regulatory domain of agencies like the CFTC and the SEC and tackle stable coin issuance, tax implications, and consumer protection.
U.S. Treasury Secretary Janet Yellen also advocated for stablecoin regulation, highlighting the dangers of their volatility and its negative effects on capital markets. It is recommended that Congress take action to address the risks and establish comprehensive laws for the changing crypto market.
Also Read: SEC Extends Decision Timeline on BlackRock’s Ethereum ETF
