U.S. Commodity Futures Trading Commission (CFTC) Commissioner Brian Quintenz, in response to a claim made by U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler, said that the SEC does not have authority over pure commodities, which is the category crypto assets belong to.
Quintenz tweeted: “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.”
Gensler’s point was that there is not enough investor protection, claiming that crypto assets are securities and, therefore, fall under the SEC’s jurisdiction. However, a previous U.S. District Court for the District of Massachusetts ruling claims that digital currencies are not securities but commodities, making the CFTC the regulating organization for crypto-related fraud.
Both the SEC and CFTC have worked together in the past, and U.S. Representative Don Beyer’s Digital Asset Market Structure and Investor Protection Act provides the SEC with with authority over “digital asset security” and the CFTC with authority in regard to digital assets.