Commodity Futures Trading Commission (CFTC)
The US regulator for commodity derivatives markets, which treats Bitcoin and Ether as commodities rather than securities.
The CFTC oversees derivatives markets such as futures and swaps. It has long held that Bitcoin is a commodity, like gold or wheat, which gives it jurisdiction over crypto derivatives and over fraud in spot markets.
That sets up a turf question with the SEC. Where the SEC sees securities, the CFTC often sees commodities, and the two have overlapping claims on the same tokens. Several proposed US bills would hand the CFTC clearer authority over spot trading of digital commodities.
Related terms
The US federal agency that oversees securities markets and has become crypto's most prominent enforcement regulator.
DerivativesFinancial contracts whose value comes from an underlying asset rather than from holding the asset itself.
FuturesContracts to buy or sell an asset at a set price on a future date, often traded with leverage.
Howey TestA US legal standard from a 1946 Supreme Court case used to decide whether an asset counts as a security.