CFTC declares Ether as a commodity again in court filing

The Commodity Futures Trading Commission (CFTC) has again labeled Ether (ETH) arsenic a commodity successful a Dec. 13 tribunal filing — successful opposition to statements from chief Rostin Behnam connected Nov. 30 suggesting that Bitcoin was the sole cryptocurrency that should beryllium viewed arsenic a commodity.

According to the CFTC, arsenic per their filing today, ETH is simply a commodity. This truly should enactment immoderate information designation to rest. pic.twitter.com/PkHWredNK4

— Hal Press (@NorthRockLP) December 13, 2022

In its lawsuit against Sam Bankman-Fried, FTX, and sister institution Alameda Research, the regulator connected aggregate occasions referred to Ether, Bitcoin (BTC) and Tether (USDT) "among others" arsenic "commodities" under United States law.

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

However, determination appears to beryllium immoderate disagreement wrong the CFTC itself regarding whether Ether should beryllium viewed arsenic a commodity oregon not, astatine slightest successful caller weeks. 

During a crypto lawsuit astatine Princeton University connected Nov. 30,  CFTC main Rostin Benham reportedly suggested that Bitcoin is the lone crypto plus that should beryllium viewed arsenic a commodity — walking backmost erstwhile comments which asserted that Ether whitethorn besides beryllium a commodity.

The president of the Securities and Exchange Commission, Gary Gensler has besides had an undetermined stance connected Ether successful caller months.

In an interview with Jim Cramer during the hosts' Mad Money amusement connected Jun. 27, Gensler confirmed that Bitcoin was a commodity adding: “That's the lone 1 I'm going to say.”

Gensler has antecedently suggested Ether was a information aft its archetypal coin offering but had go much decentralized and turned into a commodity since then.

In September, his stance appeared to person shifted again aft Ether’s modulation to proof-of-stake (PoS), erstwhile helium argued that staked tokens whitethorn represent securities nether the Howey test.

The designation of crypto assets successful the U.S. is peculiarly important, arsenic the CFTC regulates commodities futures portion securities similar bonds and stocks are regulated by the Securities and Exchange Commission (SEC).

Related: Judge orders CFTC to service Ooki DAO founders with lawsuit

Crypto skeptic Senator Elizabeth Warren is reportedly moving connected a measure that would springiness the SEC most of the regulatory authority implicit the crypto industry, and Intercontinental Exchange Inc CEO Jeffrey Sprecher is besides assured that crypto assets volition beryllium handled similar securities — suggesting astatine a fiscal services league connected Dec. 6 that this would effect successful greater user protections.

Belgium has taken a antithetic stance connected the designation however, with its Financial Services and Markets Authority asserting successful a Nov. 22 study that Bitcoin, Ether and different crypto assets issued solely by machine code bash not represent securities.