As the regulatory landscape for cryptocurrencies remains murky, Ripple CTO David Schwartz has proposed an unconventional solution.
In a tweet on March 28, Schwartz suggested that the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) should "fight out among themselves" to determine which agency should regulate the crypto industry.
The CTO's proposal highlights the growing frustration with inconsistent regulatory approaches between the two agencies.
Schwartz's tweet comes on the heels of the CFTC's recent lawsuit against Binance, one of the world's largest cryptocurrency exchanges.In its suit, the CFTC classified Bitcoin, Ethereum and Litecoin as commodities — a stark contrast to the SEC's stance that only Bitcoin is exempt from being considered a security.
This discrepancy has raised questions about the regulatory status of other digital assets further down the crypto spectrum.
Adding fuel to the fire, SEC Chairman Gary Gensler recently implied that Ethereum (ETH) and other proof-of-stake (PoS) tokens should be regulated as securities. This contradicts the view of CFTC Chairman Rostin Behnam and further complicates the regulatory landscape for cryptocurrencies.