Crypto in Limbo: Former CFTC Chair Behnam Says US Needs Real Rules

Behnam explained during an interview with Bloomberg TV on May 28 that digital assets, such as Bitcoin BTC $105,906.37 and Ethereum ETH $2,627.63 , are considered commodities under current law, which places them outside the Securities and Exchange Commission’s (SEC) jurisdiction.

At the same time, the Commodity Futures Trading Commission (CFTC), which he once led, only has authority over derivatives, not the regular buying and selling of these assets.

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Behnam explained that this gap means neither agency has full control over the core of crypto trading. Unless lawmakers allow the CFTC to oversee "cash markets" for digital assets that are not securities, the industry will continue to operate in a space with little direct regulation.

Behnam also responded to remarks made by Vice President JD Vance at the Bitcoin 2025 conference. Vance told attendees that "we reject regulators" and said the White House is backing crypto.

However, Behnam argued that financial regulators play a key role in keeping markets fair and trustworthy. He said:

Consumer protections and enforcement of the law are extremely critical to the health of our financial markets.

On May 19, Caroline Crenshaw, the only Democrat currently serving on the SEC, raised concerns about the agency’s shift in approach to crypto oversight. What did she say? Read the full story.