tldr; The U.S. Commodity Futures Trading Commission (CFTC) has reiterated that ether, along with bitcoin and litecoin, are commodities in a legal complaint against the operators of the cryptocurrency exchange KuCoin. This declaration is part of the CFTC’s ongoing efforts to assert its regulatory authority over the second largest cryptocurrency by market capitalization. The complaint highlights the CFTC’s view that KuCoin engaged in activities such as soliciting and accepting orders for futures, swaps, and leveraged transactions involving these digital assets, which are considered commodities. This move underscores the regulatory tug-of-war between the CFTC and the Securities and Exchange Commission (SEC) over oversight of the digital assets industry.
*This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.
HSuke on
> involving digital assets that are commodities
including bitcoin (BTC), ether (ETH), and litecoin (LTC)
The separation between CFTC and SEC is an American anachronism.
Hot_Difficulty6799 on
Anyone who thinks that something, under American financial regulation, is a commodity, *or* a security, is going to get it wrong.
Under American financial regulation, something can be a commodity, *and* a security.
Commodity, and Security, are not exclusive categories.
jps_ on
Despite the importance of the US regulatory scheme on crypto, the legal elements are poorly understood by the community.
There seems to be a quaint notion that if something is a commodity, that it can’t be a security. As if it’s a debate about whether something is a pig or a chicken.
But in truth, it’s more like whether something is a pig or a farm animal.
A commodity is any good (except onions, and a few other things) for which there are contracts for future delivery. Clearly, if you open an account on a CEX and are promised that you can withdraw your crypto later, presto, that crypto (which is an asset) is also suddenly a commodity. It’s as simple as that.
But that doesn’t make that crypto not a security. What makes something a security is whether or not it passes the Howey Test (whether we like it or not, that’s the law). XRP, for example, was issued as a security even though XRP itself is not as security. It’s complicated.
But what it means that a crypto can be subject to the jurisdiction of the SEC and the CFTC.
Just like you can get a ticket from a city for violating a city ordinance, and from the state for violating a state law. Or you can be a criminal and murder someone, and also be liable in a civil trial.
libretumente on
As well as LTC
Disastrous_Week3046 on
Amazing how y’all will just agree with whoever tells you what you want to hear.
7 Comments
tldr; The U.S. Commodity Futures Trading Commission (CFTC) has reiterated that ether, along with bitcoin and litecoin, are commodities in a legal complaint against the operators of the cryptocurrency exchange KuCoin. This declaration is part of the CFTC’s ongoing efforts to assert its regulatory authority over the second largest cryptocurrency by market capitalization. The complaint highlights the CFTC’s view that KuCoin engaged in activities such as soliciting and accepting orders for futures, swaps, and leveraged transactions involving these digital assets, which are considered commodities. This move underscores the regulatory tug-of-war between the CFTC and the Securities and Exchange Commission (SEC) over oversight of the digital assets industry.
*This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.
> involving digital assets that are commodities
including bitcoin (BTC), ether (ETH), and litecoin (LTC)
[Filing source](https://www.cftc.gov/media/10421/enfkucoincomplaint032624%20/download)
The separation between CFTC and SEC is an American anachronism.
Anyone who thinks that something, under American financial regulation, is a commodity, *or* a security, is going to get it wrong.
Under American financial regulation, something can be a commodity, *and* a security.
Commodity, and Security, are not exclusive categories.
Despite the importance of the US regulatory scheme on crypto, the legal elements are poorly understood by the community.
There seems to be a quaint notion that if something is a commodity, that it can’t be a security. As if it’s a debate about whether something is a pig or a chicken.
But in truth, it’s more like whether something is a pig or a farm animal.
A commodity is any good (except onions, and a few other things) for which there are contracts for future delivery. Clearly, if you open an account on a CEX and are promised that you can withdraw your crypto later, presto, that crypto (which is an asset) is also suddenly a commodity. It’s as simple as that.
But that doesn’t make that crypto not a security. What makes something a security is whether or not it passes the Howey Test (whether we like it or not, that’s the law). XRP, for example, was issued as a security even though XRP itself is not as security. It’s complicated.
But what it means that a crypto can be subject to the jurisdiction of the SEC and the CFTC.
Just like you can get a ticket from a city for violating a city ordinance, and from the state for violating a state law. Or you can be a criminal and murder someone, and also be liable in a civil trial.
As well as LTC
Amazing how y’all will just agree with whoever tells you what you want to hear.