CFTC Once More Identifies Ether As Commodity In Court Filing

In a court filing on December 13, the Commodity Futures Trading Commission (CFTC) declared Ether to once again be a commodity, in contradiction to remarks made by the agency’s head Rostin Behnam on November 30 that Bitcoin was the only cryptocurrency that should be regarded as a commodity.

The regulator repeatedly referred to Ether, Bitcoin, and Tether (USDT) as “among others” in its action against Sam Bankman-Fried, FTX, and sister business Alameda Research. These digital assets are classified as “commodities” under US law.

“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).”

However, at least in recent weeks, there seems to have been significant dissent inside the CFTC itself about whether Ether should be treated as a commodity or not.

On Nov. 30, at a crypto symposium at Princeton University, CFTC chief Rostin Benham allegedly suggested that only Bitcoin should be considered a commodity, reversing earlier statements that Ether might potentially qualify.

Gary Gensler has also been unsure about his position on ether recently

“That’s the only one I’m going to say,” Gensler said after confirming that Bitcoin was a commodity during an interview with Jim Cramer on the hosts’ Mad Money show on June 27.

Prior to its initial coin offering, Gensler claimed Ether was a security; but, since then, it has grown increasingly decentralized and evolved into a commodity.

His position appears to have changed once more in September following Ether’s switch to proof-of-stake (PoS), when he asserted that staked tokens might qualify as securities under the Howey test.

Because the Securities and Exchange Commission (SEC) oversees securities like bonds and stocks while the Commodity Futures Trading Commission (CFTC) regulates commodities futures, the categorization of crypto assets in the US is crucial (SEC).

Bitcoin skeptic At a financial services conference on December 6, Intercontinental Exchange Inc. CEO Jeffrey Sprecher expressed confidence that crypto assets will be treated like securities and that this will lead to greater consumer protections. Senator Elizabeth Warren is reportedly working on a bill that would give the SEC the majority of the regulatory authority over the cryptocurrency industry.

However, Belgium has taken a different perspective on the matter, stating in a study published on November 22 that Bitcoin, Ether, and other crypto assets created exclusively through computer code do not qualify as securities.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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