CFTC’s Behnam says Prometheum’s ETH stance could create inter-agency conflict 

Bitcoin and ether are commodities, Behnam said, but if the SEC claims otherwise, things could get complicated

article-image

Mark Van Scyoc/Shutterstock modified by Blockworks

share

As Prometheum, the first and only company to secure a special purpose broker dealer license from the US Securities and Exchange Commission, gears up to launch its trading operation, Commodity and Futures Trading Commission Chairman Rostin Behnam said rules across agencies could become conflicting. 

Bitcoin and ether are commodities, Behnam told the House Committee on Agriculture during testimony Wednesday. He believes that any claim that Prometheum may be making to the contrary is not reflective of the SEC’s stance. 

“From my understanding, essentially reading the press and talking to my staff, who have reached out to the SEC, this was an independent decision by Prometheum…to signal to the market that it is their intent to custody either,” Behnam said when asked about how the CFTC views ether. 

Read more: Prometheum adds Morgan Stanley alum as CFO ahead of trading launch 

“So it is my understanding that this was not at all a decision by the SEC, this was an individual decision by the entity,” Behnam added

Behnam was referring to Prometheum’s recent announcement that it would launch its custody service with ether as its first asset. The announcement raised eyebrows across the crypto industry as onlookers speculated whether the news might force the SEC to take a more direct position on ether’s status as a security or commodity

“How this plays obviously is very critical…the issue is if we do have any action by the SEC, essentially validating [Prometheum’s] decision constituting ether as a security it will then put our registrants or exchanges who list either as a futures contract sort of in non-compliance of SEC rules as opposed to CFTC rules,” Behnam added. 

Read more: SEC Commissioners question ‘ambiguity’ in ShapeShift settlement

Behnam’s comments were in response to a question from Agriculture Committee Chairman Glenn Thompson — a known supporter of the crypto industry — about how ether being classified as a security could impact the CFTC’s jurisdiction. The CFTC allows registered commodity derivatives exchanges to list either derivatives contracts. 


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Research Report Templates.jpg

Research

Figure, founded by former SoFi CEO Mike Cagney, has emerged as a leader in onchain RWAs, with ~$17.5B publicly tokenized. The platform’s ecosystem volume is growing ~40% YoY as it expands beyond HELOCs into student loans, DSCR loans, unsecured loans, bankruptcy claims, and more. Operationally, Figure cuts average loan production cost by ~93% and compresses median funding time from ~42 days to ~10, creating a durable speed-and-cost advantage.

article-image

Former White House crypto official Bo Hines is expected to be the CEO of the new project

article-image

In bonds, stablecoins and billionaires, a reminder of what makes crypto special

article-image

21Shares exec says CPI and PPI data supports a Fed rate cut, with market leaning toward a 25bps decrease

article-image

The Ethereum co-founder suggested LINEA holders would be eligible for other airdrops in cryptic tweet

article-image

The layer-2’s biggest release yet brings benefits — but a post-upgrade outage caused a chain reorg

article-image

Crypto is shifting into risk-on mode — pump.fun dominates meme activity, while Lido leans on treasury maneuvers