WASHINGTON, Thursday, July 11, 2024- The Commodity Futures Trading Commission (CFTC) Chairman Rostin Behnam solidified the classification of Bitcoin and Ethereum as commodities during congressional testimony on Wednesday, July 10.
His statement comes amidst ongoing uncertainty surrounding the regulatory status of cryptocurrencies.
Behman cited a recent federal court ruling in Illinois as evidence, where a judge affirmed the CFTC’s authority to regulate cryptocurrencies under the Commodity Exchange Act (CEA).
This decision specifically referenced Bitcoin and Ethereum.
However, legal experts caution against interpreting this as a definitive resolution.
Legal professionals emphasize that trial court rulings don’t universally bind other courts.
The recent approval of spot Ethereum exchange-traded funds (ETFs) by the Securities and Exchange Commission (SEC) further complicates the regulatory landscape.
While the SEC hasn’t explicitly declared Ethereum a security, this approval seemingly contradicts their previous stance on certain cryptocurrency projects.
Historically, judicial rulings on cryptocurrencies and security laws have lacked consistency.
Cases in both the Southern and Eastern Districts of New York showcase conflicting interpretations of the Howey Test, a standard used to determine an asset’s status as a security.
Despite this ambiguity, the SEC’s approval of spot Ethereum ETFs suggests an implicit recognition of Ethereum as a commodity, one report said.
This is because the regulatory framework for securities differs significantly from that of commodities.
Behman’s comments sparked excitement within the cryptocurrency community, with prominent figures celebrating the news on social media.
However, the long-term regulatory picture for cryptocurrencies remains unclear.
