- The CTFC has on several occasions referred to ETH, BTC, and USDT as commodities under United States law.
- CTFC head Rostin Behnum previously suggested that bitcoin is the only cryptocurrency that should be viewed as a commodity.
- CTFC is suing Sam Bankman-Fried, FTX and sister company Alameda Research.
Commodity Futures Trading Commission (CFTC) Sam Bankman-Fried, in his lawsuit against FTX, and sister company Alameda Research, on several occasions referred to ether, bitcoin, and Tether’s USDT as commodities under United States law. The CFTC filed a court filing on December 13.
The recent reference to various cryptocurrencies as commodities comes nearly a month after CFTC chief Rostin Behnam suggested that bitcoin was the only cryptocurrency that should be treated as a commodity.
In a court filing, the CFTC noted:
“Certain Digital Assets” are commodities, “as defined under section 1A(9) of the Act, 7 USC § 1A(9), including bitcoin (BTC), ether (ETH), tether (USDT) and others.”
Is Ether a Commodity or a Security According to the CFTC?
In recent weeks, there appears to be some disagreement within the CFTC as to whether or not ether should be considered a commodity.
During a crypto event at Princeton University in November, CFTC chief Rostin Benham suggested that bitcoin was the only cryptocurrency that should be treated as a commodity, retracting previous comments that characterized ether as a commodity.
In June this year, Gary Gensler, chairman of the Securities and Exchange Commission, said in an interview with Jim Cramer during the host’s Mad Money show that bitcoin is a commodity, “that’s all I’m going to say.” Gensler has suggested on previous occasions that ether was a security after its initial coin offering (ICO) but that it has turned into a commodity after becoming more decentralized. But in September, his stance changed again on Ether after he suggested Most cryptocurrencies can be considered securities Howe under trial.
The designation of crypto assets in the US is important because the CFTFC regulates commodity futures while the Securities and Exchange Commission (SEC), which is in a legal battle with several crypto startups, regulates securities.