CFTC Refers to Ethereum as a Commodity!

 

In Short

  • In many instances, CTFC has referred to ETH, BTC, and USDT, amongst other cryptocurrencies, as commodities under the laws of the United States.
  • Earlier, the chief executive officer of the CTFC, Rostin Behnam, stated that Bitcoin was the sole cryptocurrency that ought to be considered a commodity.
  • The CTFC has filed a lawsuit against Sam Bankman-Fried, FTX, and Alameda Research, which is the sibling firm.

In its litigation against SBF, FTX, and sister company Alameda Research, the CFTC has referred to Ether, bitcoin, and Tether’s USDT on numerous occasions as commodities under the laws of the United States. The lawsuit also names Alameda Research as a defendant. The CFTC submitted the paperwork to the court on December 13th.

About a month and a half ago, the head of the Commodity Futures Trading Commission (CFTC), Rostin Behnam, indicated that bitcoin was the sole crypto that should be considered as a commodity. Recently, several cryptocurrencies have been referred to as commodities.

CFTC mentioned the following in their court filing:

Certain digital assets are “commodities,” including bitcoin (BTC), ether (ETH), tether (USDT) and others, as defined under Section 1a(9) of the Act, 7 U.S.C. § 1a(9).

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Does CFTC Qualify Ether as a Commodity or Security?

There have been some differing opinions expressed within the CFTC over the past few weeks over whether or not Ether ought to be regarded as a commodity.

In November, during a crypto event that took place at Princeton University, CFTC chief Rostin Benham made the suggestion that bitcoin was the sole cryptocurrency that ought to be regarded as a commodity. This was a reversal of prior comments that had proclaimed Ether as a commodity.

In an interview that took place in June of this year on the Mad Money show, the head of the Securities and Exchange Commission, Gary Gensler, stated that Bitcoin was a commodity. He added, “That’s the only one I’m going to say.”

In the past, Gensler has made statements to the effect that Ethereum was a security after its ICO, but this doesn’t seem to be the case as the cryptocurrency has evolved into a commodity as has become more decentralized.

But in September, it seemed as though he had changed his mind about Ether once more after he said that the majority of cryptocurrencies might be considered securities if the Howey test is applied to them.

Because the CFTFC regulates commodities futures, and the SEC, which regulates securities and is engaged in legal battles with a number of crypto startups, it is important that cryptocurrencies be designated as either commodities futures or securities in the United States.

What is your view on this issue? Do let us know.

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