Home Business US regulator suddenly turns: Bitcoin no security, ethereum does

US regulator suddenly turns: Bitcoin no security, ethereum does

Toezichthouder VS draait opeens: Bitcoin geen security, ethereum wel

The American Commodity Futures Trading Commission (CTFC) recently made an important statement about the world of cryptocurrencies. In practice, the CTFC is comparable to the Securities and Exchange Commission (SEC), but is considering commoditieseither goods or raw materials, instead of securities, or effects. According to the CTFC bitcoin (BTC) no security, but other cryptocurrencies such as ethereum (ETH) yes.

Is ethereum a security?

It is an issue that has gripped the entire crypto industry for a long time. To be cryptocurrencies well securities or not? This is important, because the answer to this question determines how and by whom the crypto market will be regulated in the United States. This is also what the XRP lawsuit against Ripple is all about. The SEC claims jurisdiction over the market, as they believe most cryptocurrencies are securities. However, not everyone agrees.

The CTFC now publicly states that only the king of cryptocurrencies, bitcoin, can in any case not be seen as security, but as a commodity. Thus, the regulation of everything related to bitcoin should also be done by the CTFC, not the SEC.

CTFC President Rostin Behnam made the announcement yesterday at an event at Princeton University. With the statements, he does return to earlier claims that ethereum would also be a commodity. In October, CTFC Commissioner Christy Romero She also insists that Ethereum is not a security under any circumstances, but a commodity.


Due to the lack of clarity about what cryptocurrencies are from a legal perspective, a conflict of sorts has also arisen between the SEC and the CTFC. Not long ago, both regulators claimed total responsibility for regulating the market.

However, Chairman Behnam’s recent statements suggest that the CTFC may have lost their way and that the SEC, led by Chairman Gary Gensler, may have gained the upper hand.

Whatever the final outcome of the debate, it is important that an answer is forthcoming. Due to the lack of clarity from the regulators and the government in the United States, the market remains in the dark for the time being and crucial unambiguous regulations are not forthcoming.

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