Following several actions by the SEC in relation to the field of regulation of the crypto industry, and an equally strong response by the US Futures Trading Commission (CFTC) which pushes what it characterizes as “regulation through enforcement”, the senator’s staff member drew his conclusion. The SEC urgently wants to resolve its dispute with the CFTC over crypto jurisdiction.If the matter isn’t resolved internally, it says lawmakers will have to get involved, and that Congress is expected to side with the CFTC.
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In 2014, long before ethereum and almost every cryptocurrency other than bitcoin and its early competitors existed, the CFTC established its jurisdiction over what it then called “virtual currencies.” Then, in 2018, a federal court ruled that the CFTC could prosecute fraud cases related to virtual currency, according to a CFTC announcement. Similarly, the SEC has argued several times that Bitcoin is a commodity. And in June 2018, SEC Director William Hinman said in a speech that he did not think the site was a security, hinting that it might properly be under the jurisdiction of the CFTC.