Former Commodity Futures Trading Commission (CFTC) Chair Rostin Behnam has cautioned that the U.S. crypto market will remain largely unregulated unless lawmakers grant the agency he once led broader authority.
Speaking in a Bloomberg TV interview, Behnam threw his weight behind the crypto industry’s longstanding claim that major digital assets such as Bitcoin and Ether are commodities, not securities. This distinction effectively limits the Securities and Exchange Commission’s (SEC) jurisdiction over them.
“If you look at existing law, the few largest tokens are commodities, which means the SEC does not have jurisdiction over those tokens, which include Bitcoin and Ether,”
he said.
Behnam argued that the CFTC, as a derivatives-focused regulator, is currently hamstrung in overseeing the broader crypto cash market and that without congressional approval to expand its mandate, regulatory gaps will persist.
His remarks come amid growing scrutiny over the Trump family’s increasing involvement in the cryptocurrency sector. World Liberty Financial, a digital asset platform linked to the Trump brand, along with various meme coins and a stablecoin, has drawn the attention of lawmakers concerned about potential conflicts of interest.
Political strategist Sanders Townsend weighed in, claiming that President Donald Trump is “using the presidency” to advance his family’s crypto interests. He warned that the administration’s involvement in the crypto legislative process is raising “red flags” in Congress, citing established ethical standards for public officials.
Behnam echoed broader concerns about the risks of a regulatory vacuum, saying,
“Customers, investors — both retail and institutional — will remain exposed to harm, fraud, and manipulation unless we have effective oversight.”
The former CFTC chair also responded to Vice President JD Vance’s controversial comments at the Bitcoin 2025 conference, where Vance declared a rejection of regulators and claimed crypto has a champion in the White House. Behnam countered that regulators are essential for the integrity of American markets, emphasizing that consumer protections and law enforcement are crucial for the financial system’s health.
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