CFTC Labels Bitcoin, Ethereum, and Tether As “Commodities”

Lavina Daryanani
Source: Technicity, Medium

Regulators around the world have been trying to break down and decipher the nature of crypto assets. Even though regulations have been enforced, there are still question marks pertaining to the category under which they fall.

CTFC Addresses BTC, ETH, USDT As Commodities

In a recent court filing, the Commodity Futures Trading Commission [CFTC] attributed digital assets as commodities. The same included virtual currencies like Bitcoin [BTC], Ether [ETH], and Tether [USDT]. The filing read,

“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 also noted that digital assets were anything that could be “stored and transmitted electronically” and had “associated ownership or use rights.”

It added that these assets were digital representations of value. Furthermore, it stated that they functioned as mediums of exchange, units of account, and stores of value.

In its lawsuit against FTX and Alameda Research, the commission has time and again referred to Bitcoin, Ethereum, and Tether “among others” as “commodities” as per US law.

A few from the space were, however, not convinced and opined that there was no rationale behind Tether falling under the same category.

Despite the latest CTFC filing, it is worth noting that Rostin Behnam, Chair of the Commodity Futures Trading Commission, said recently that Bitcoin was the only crypto that should be viewed as a commodity is Bitcoin. His latest comment contrasted his previously said statement in October. At that time, he suggested Ether may also be a commodity.

Bitcoin, as such, is unanimously viewed as non-security owing to its decentralized nature. The label of Ether and other Altcoins has always been controversial. To demystify the categorization yardstick, Ripple is fighting a lawsuit against another agency, the Securities and Exchange Commission.

Also Read: Ethereum, Ripple Are Committing Securities Fraud: Michael Saylor