Rostin Behnam, Chair of the Commodity Futures Trading Commission (CFTC), has expressed his belief that most digital assets should be classified as commodities rather than securities. His comments were made during an appearance on CNBC's "Squawk Box" on Dec. 12.

In response to questions about the ongoing regulatory dispute over digital assets between the CFTC and U.S. Securities and Exchange Commission (SEC), Behnam stated that the key issue lies in determining what exactly a token buyer receives upon purchase. According to him, legal precedent suggests that "Under existing law, many of the tokens constitute commodities," as per a video of the conversation shared on X.

Behnam also highlighted that discussions regarding the regulation of digital assets have been taking place "for years." He urged Congress to intervene and address existing gaps in the industry's regulatory framework. He described cryptocurrency as a "new technology" that requires "a new way of thinking around policy and legislation."

Contrary to Behnam's views, SEC Chair Gary Gensler has consistently maintained that current regulations are adequate for overseeing the crypto industry, as reported by CryptoSlate.

During an address to the Practicing Law Institute last year, Gensler argued that "most crypto tokens" are securities. He further stated that the SEC would continue enforcing existing laws within the digital asset industry, according to CoinDesk. "Nothing about the crypto markets is incompatible with the securities laws," Gensler asserted in his speech.

However, lawmakers such as U.S. Senator Cynthia Lummis have criticized SEC's approach towards regulating the crypto industry through enforcement actions. She warned about potential consequences of failing to implement comprehensive regulations for this sector, including innovation moving offshore. "The SEC has failed to provide a path for digital asset exchanges to register, and even worse has failed to provide adequate legal guidance on what differentiates a security from a commodity," Lummis said in a post on X in June.

Last summer, Lummis and Sen. Kirsten Gillibrand (D-NY) introduced the Responsible Financial Innovation Act. This legislation aims to provide a comprehensive regulatory framework for digital assets, according to a press release. The bill includes standards for determining which digital assets should be regulated as securities and which as commodities. It also assigns regulatory authority over the digital asset spot market to the CFTC, asserting that most digital assets are more akin to commodities than securities.

Behnam was appointed as a CFTC Commissioner in 2017 and assumed his current role as Chair in Jan. 2022, according to cftc.gov.