Cryptocurrencies like Ethereum have had their fair share of controversy over classification. Government regulators such as the Securities and Exchange Commission (SEC) and the US Commodity Futures Trading Commission (CTFC) have battled other digital assets in the past.
The SEC is now busy with a long-running case once morest Ripple Labs, focusing on the designation of XRP tokens as securities.
The CFTC also views all virtual currencies as commodities under the Commodity Exchange Act (CEA).
However, in light of the recent outrageous events in the crypto space, the CTFC and SEC are more determined than ever to increase proper regulation and monitoring.
Investors also need more crypto coordination, transparency and honesty to prevent future disasters.
CTFC vs. Ethereum
The CTFC once once more listed Ethereum as a commodity during a recent court filing. This is at odds with the position of Chief Rostin Behnam in his Nov. 30 statement, according to Behnam, as Behnam said that Bitcoin is the only cryptocurrency. The only one that should be classified as a commodity.
CTFC in Lawsuit Sam Bankman-Fried, FTX, and Alameda Research Call Bitcoin, Tether (USDT) and Ether product under the provisions of United States law Legal reference text from Section 1a(9) of Act 7 USC § 1a(9).
The CTFC has been internally divided to classify Ether as a commodity over the past week. Benham said that Bitcoin is the only crypto asset that should be called a commodity. This view is the opposite of filing.
Will the SEC get more power?
Meanwhile, popular crypto skeptic Sen. Elizabeth Warren said it was preparing a bill to give the SEC more authority to regulate crypto assets.
Intercontinental Exchange CEO Jeffrey Sprecher believes that crypto assets will eventually be called securities. During the Financial Services Conference on Dec. 6, Sprecher stated that the move would help ensure greater consumer protection.
However, SEC Chairman Gary Gensler has yet to make a decision on this issue. In an interview with Jim Cramer during Mad Money on June 27, Gensler asserted that Bitcoin is a commodity. “That’s the only person I’m going to say,” he said.
He suggested that Ether was a security following an Initial Coin Offering (ICO), but it became more decentralized and evolved into a commodity. in september He appears to be reconsidering his stance during Ether’s transition to Proof-of-Stake (POS).
Crypto asset groupings are important in the US because the CFTC regulates commodities while the SEC regulates securities.
