Ethereum can be both a commodity and a security. said the former commissioner of the United States Commodities Futures Trading Commission (CFTC).
Dan Berkovitz, former general counsel of the Securities and Exchange Commission (SEC), said on the May 23 episode of Laura Shin’s Unchained podcast that it is legally possible for ETH to fall under the jurisdiction of both regulators.two of
Much of the confusion regarding Ether’s legal status has been caused by conflicting statements from the CFTC and SEC over the past six months, with the CFTC repeatedly listing Ether, along with a number of other cryptocurrencies, as commodities. commodity
Meanwhile, the Gary Gensler-led SEC has yet to clearly define a legal category for Ether, with Gensler saying at a hearing in April that everything but Bitcoin should be treated as a security. and declined to provide further details.
Berkovitz said that due to the overlapping legal definitions of commodities and securities, It is therefore possible for the asset to be classified as both.
The main regulatory scope of the CFTC covers futures and commodities, while the SEC only regulates securities. It’s possible that two regulators have power over that.
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