CFTC Chairman Addresses Prometheum's Ether Custody Service and Potential Regulatory Conflicts

According to Blockworks, as Prometheum prepares to launch its trading operation, Commodity and Futures Trading Commission (CFTC) Chairman Rostin Behnam has expressed concerns about potential conflicting rules across agencies. During a testimony to the House Committee on Agriculture, Behnam stated that Bitcoin and Ether are commodities, and any claims made by Prometheum to the contrary do not reflect the SEC's stance. He clarified that Prometheum's decision to launch its custody service with Ether as its first asset was an independent decision, not one made by the SEC. Behnam's comments came in response to a question from Agriculture Committee Chairman Glenn Thompson about the potential impact of Ether being classified as a security on the CFTC's jurisdiction. The CFTC currently allows registered commodity derivatives exchanges to list Ether derivatives contracts. The recent announcement by Prometheum has raised questions within the crypto industry about whether the SEC may be forced to take a more direct position on Ether's status as a security or commodity.