The Commodity Futures Trading Commission (CFTC) has relabeled Ether (ETH) as a commodity in a Dec. 13 court filing, in contrast to statements by chief Rostin Behnam on Nov. 30 that suggested Bitcoin was the only cryptocurrency that should be viewed as a commodity.
According to the CFTC, as per their filing today, ETH is a commodity. This really should put an end to any security designation. pic.twitter.com/PkHWredNK4
โ Hal Press (@NorthRockLP) December 13, 2022
In its lawsuit against Sam Bankman-FriedFTX and sister company Alameda Research, the regulator on multiple occasions referred to ether, Bitcoin (BTC) and Tether (USDT) "among others" as "commodities" under United States law.
"Certain digital assets are "commodities", including bitcoin (BTC), ether (ETH), tether (USDT), and others, as defined in Section 1a(9) of the Act, 7 USC ยง 1a(9)" .
However, there seems to be some disagreement within the CFTC itself regarding whether or not Ether should be viewed as a commodity, at least in recent weeks.
During a crypto event at Princeton University on Nov. 30, CFTC head Rostin Benham suggested that Bitcoin is the only crypto asset that should be seen as a commodity โ backtracking on earlier comments that Ether can also be a commodity.
Securities and Exchange Commission Chairman Gary Gensler has also taken an indeterminate stance on Ether in recent months.
in a interview With Jim Cramer during the hosts' Mad Money show on June 27, Gensler confirmed that Bitcoin was a commodity, adding: "That's the only one I'm going to say."
Gensler previously suggested that Ether was a security after its initial coin offering, but it had become more decentralized and commoditized since then.
In September, his stance seemed to have changed again after the transition from Ether to proof of stake (PoS)when he argued that staked tokens can constitute securities under Howey's test.
The US designation of crypto assets is particularly important, as the CFTC regulates commodity futures, while securities such as bonds and stocks are regulated by the Securities and Exchange Commission (SEC).
Related: Judge Orders CFTC to File Lawsuit Against Ooki DAO Founders
Crypto skeptic Senator Elizabeth Warren is reportedly working on a bill that would give the SEC most regulatory authority on the crypto industry, and Intercontinental Exchange Inc CEO Jeffrey Sprecher is also confident that crypto assets will be handled like securities, suggesting at a financial services conference on December 6 that this would result in greater consumer protection.
However, Belgium has taken a different stance on the designation, with its Financial Services and Markets Authority stating in a Nov. 22 report that Bitcoin, Ether and other crypto assets issued by computer code only They are not values.
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Warner discusses collapse of cryptocurrency exchange
