Bitcoin and Ethereum are commodities, new court filing rules

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CFTC states in court-filing against SBF that Ether (ETH) and Bitcoin (BTC) are commodities.
The filing brings some clarity to the legal status of ETH which was previously considered a security.

The U.S. Commodity Futures Trading Commission (CFTC) has made the bullish pronouncement that Bitcoin, Ethereum, and Tether, among other cryptocurrencies, are commodities under U.S. laws.

The CFTC states this in its complaint, demanding injunctive and other equitable reliefs. Civil monetary penalties against Sam Bankman-Fried, the former CEO of FTX, were also demanded.

A digital asset is anything that can be stored and transmitted electronically and has associated ownership or use rights… Certain digital assets are ‘commodities,’ including bitcoin (BTC), ether (ETH), tether (USDT) and others, as defined under Section 1a(9) of the Act, 7 U.S.C. § 1a(9), the filing stated.

Based on this, the CFTC argues that it has jurisdiction to pursue its claims against FTX and Bankman-Fried. The regulator accuses SBF of having violated Section 13c(b) of the Act, 7 U.S.C. § 13c(b) which stipulates that “any person who, directly or indirectly, controls any person who violates” the commodity futures act will be held liable for such violation.

The stance in the filing has caught the attention of crypto market participants as it is in contrast with remarks that the CFTC chairman Rostin Benham made recently.

During a crypto event at Princeton University on Nov. 30, Benham reportedly stated that Bitcoin (BTC) is the only crypto that can be viewed as a commodity.

Notably, his statement at the time was a reversal of previous CFTC guidance that asserted that Ether (ETH) may also be a commodity.

The shifting regulatory position has also been on the back of a turf tussle between the CFTC and its sister regulator, the U.S. Securities and Exchange Commission.

In an interview with market pundit Jim Cramer back in July, Gary Gensler, the chairman of the securities market watchdog, maintained that “the only” cryptocurrency that he was going to state was a commodity is Bitcoin.

Sam Bankman-Fried facing charges from multiple U.S. regulatory watchdogs

Meanwhile, the CFTC demands that SBF stand a jury trial for violations of U.S. laws. Additionally, SBF is to also answer to SDNY, whose charges against the former FTX CEO prompted his arrest.

The SDNY’s criminal charges against SBF include eight counts that cover allegations of wire fraud against customers and those who lent money to his firms, securities fraud, and money laundering. While the SEC states that it has approved the charges.