CFTC Chair Confronts SEC’s Possible Decision of Ethereum’s Custody

The probable decision of SEC to allow one of its registered firms, Promethium to custody Ether, would classify it a security, warned Commodity Futures Trading Commission (CFTC). The CFTC Chairman, Rostin Behnam testified in a March 6 hearing before the House Committee that both Bitcoin and Ether are commodities. SEC-registered Special Purpose Broker Dealers (SPBDs) can only custody securities, and the SEC Chair has not clearly mentioned if ETH is a security or commodity.  He also highlighted that the increasing market participation in crypto has tested the limits of the regulatory framework, and has called the Congress to take action and address the regulatory challenges.