Thursday’s report, based on recent FTX court filings, suggests that the Commodity Futures Trading Commission (CFTC) has designated Ethereum (ETH), Bitcoin (BTC), and US Dollar Tether (USDT) as commodities. The CFTC often refers to the three as commodities in its complaint against former FTX CEO Sam Bankman-Fried.
CFTC designates three cryptocurrencies as commodities
The United States District Court for the Southern District of New York now has a fraud case Filed by the CFTC against FTX, Alameda Research and Sam Bankman-Fried. However, the indictment lists Tether, Ether, and Bitcoin as commodities.
The commission considers data that can be transmitted electronically, held by an entity, and used in a specified manner to be digital assets. Classified cryptocurrencies are all examples of digital assets that act as a store of value and a medium of exchange.
The lawsuit filed by the CFTC claimed that Bankman-Fried and his companies defrauded their customers of money. He and other high-ranking FTX officials received questionable loans from the city of Alameda ResearchHundreds of millions of dollars in total to use for excessive personal spending and political contributions.
The CFTC Chairman Has an Opposite View
It appears that Commodity Futures Trading Commission (CFTC) chairman Rostin Behnum disagrees with the commission’s decision to consider ETH a commodity.
During a recent crypto event at Princeton University, he changed his stance and argued that the two major cryptocurrencies are commodities. Behnam’s recent stance has found support from two of the SEC’s top officials, Chairman Gary Gensler and Commissioner Robert Schiller.
Many believe that ETH is a security because of the SEC chairman’s frequent comments that only bitcoin is a commodity. Gensler has maintained his stance despite Ethereum’s recent switch to a proof-of-stake consensus mechanism.
Before long, Gensler is on a mission to prove that her beliefs are correct. In October, the security agency proved in court that LBC currency was used in LBRY. Network The protocol was unregistered security and therefore won the case against decentralized file-sharing and payment networks.
The year-long trial left little doubt that the SEC’s case against Ripple would be unsuccessful. The token classification debate has sparked discussions among regulators around the world.
Several regulatory agencies, such as the Financial Services and Markets Authority of Belgium, view tokens generated by computer code and not issued for profit as commodities rather than securities (FSMA).