CFTC vs SEC: A power struggle over whether it's a commodity or a security.
On the 27th (local time), the U.S. Commodity Futures Trading Commission (CFTC) filed a lawsuit against Binance, the world’s largest cryptocurrency exchange, and its CEO Changpeng Zhao (CZ) for violating the Commodity Exchange Act (CEA), among other charges.
(omitted)
Hyeonsu “Elliot” Jin, managing partner at Decent Law Firm, commented, "Regulations on securities are more complex and stringent than those on commodities. As of 2022, the SEC employed 4,807 people, compared to the CFTC’s 677, which highlights a significant difference in manpower. The industry is likely to perceive this as a difference in the intensity of oversight and regulation."
He further added, "In South Korea, both commodities and securities fall under the jurisdiction of the Financial Services Commission (FSC), so the difference may not be as pronounced. However, there is a clear regulatory disparity between securities, which require the submission of a securities registration statement to the FSC, and derivatives, where basic information necessary for trading must be disclosed by the listing exchange."
