Dan Berkowitz, former commissioner of the CFTC and former general counsel of the SEC, indicated that it is possible to classify Ethereum as both a commodity and a security.
As cryptocurrencies become more popular, there is a growing need for clarity regarding their legal status, as many people view them differently based on regulatory provisions in their jurisdictions. What do you think in addition to the ongoing conversation about the regulatory status of EthereumDan Berkowitz, former commissioner of the Commodities Futures Trading Commission (CFTC), said in an interview in the May 23 edition of unsolicited podcast Ethereum can be a security and a commodity at the same time.
According to him, Ethereum may fall under the Securities and Exchange Commission (seconds) and CFTC regulatory provisions. While the former is attempting to clearly classify Ethereum but leans towards treating it as a security, the latter treats it as a commodity.
Interpreting the CFTC and SEC Overlapping Definitions
Speaking further, he examined the definitions the two regulatory bodies provided for securities and commodities and identified some shared characteristics. According to the CFTC’s provision, a commodity is not limited to tangible items, but includes any asset that is included in a futures contract. The Securities and Exchange Commission’s definition of a security also includes contracts subject to futures contracts, making it overlap with the CFTC’s definition.
Since the CFTC’s definition allows them to view ETH as a commodity and the SEC views it as a security, it is fine to consider crypto as both a commodity and a security that both bodies regulate. should do.
Colin Lloyd, a Sullivan & Cromwell partner who was also on the podcast, disagreed with the SEC’s position that all cryptocurrencies except Bitcoin should be considered as security. He said he has not seen any legal precedent supporting the idea that a sequence of numbers on a blockchain should automatically be considered a security.
The regulatory status of cryptocurrencies remains a major concern within the crypto industry. Each step and discussion taken to establish their proper regulatory status brings us closer to finding a permanent solution. The May 23 episode of the Unchained podcast aims to contribute to addressing this issue.
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