CFTC chairman defines the status of Ether
Chairman Heath Tarbert asserts that Ether is a commodity
Financial regulators are still trying to determine how to classify individual cryptocurrency projects, but many are apparently too confusing. This isn’t the case for Bitcoin (BTC) or Ether (ETH), both of which have already been determined by the Securities and Exchange Commission (SEC) to be securities. Now, the Commodity Futures Trading Commission (CFTC) has weighed in, as well, and asserts that ETH should be defined as a commodity.
The chair of the CFTC had sent out a request for comments on Ether in December of last year. The goal was to find additional information to either support or refute the commission’s original view of the digital currency, first established in 2015, that it might be a commodity. However, it had not yet taken an official stance.
The chair of the CFTC, Heath Tarbert, has now offered that stance, explaining, “We’ve been very clear on bitcoin: bitcoin is a commodity. We haven’t said anything about ether — until now. It is my view as chairman of the CFTC that ether is a commodity.”
This may not seem like a big deal to casual crypto users, but to holders and investors it is huge. It paves the way for ETH futures to be traded on US markets, and the classification is sure to pave the way for new ETF trading products to be introduced soon, as long as they’re not exchange-traded funds.
Tarbert added, in explaining how ETH may have gone from being a security to being a commodity, “You can have a situation where something in an initial coin offering is a security initially, but over time, it gets more decentralized, and there’s a tangible value there, so you can have things that change back and forth.”