The Daily Hodl
  • FEATURES
    • News
    • Bitcoin
    • Ethereum
    • Ripple and XRP
    • Altcoins
    • Financeflux
    • Trading
    • NFTs
    • Blockchain
    • Futuremash
    • Regulators
    • Scams
    • Crypto 101
  • HODLX
    • Latest Stories
    • FAQ
    • Submit Guest Post
  • INDUSTRY ANNOUNCEMENTS
    • Latest
    • Press Releases
    • ChainWire
    • Sponsored Posts
    • Submit Your Content
  • CRYPTO MARKETS
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Binance Coin (BNB)
  • BEGINNERS
    • What Is Bitcoin?
    • What Is Blockchain?
    • What Does Hodl Mean?
    • How to Pay Your Bills with Bitcoin
    • Best Bitcoin FAQs
    • Example of Bitcoin’s Purpose
    • Cryptocurrency Has Multiple Meanings
    • Authenticator Alert – Securing Your Crypto
  • SUBMIT
    • Guest Post
    • Press Release
    • Sponsored Post
    • Advertise
  • EMAIL ALERTS
  • DAILY HODL MIX
No Result
View All Result
  • FEATURES
    • News
    • Bitcoin
    • Ethereum
    • Ripple and XRP
    • Altcoins
    • Financeflux
    • Trading
    • NFTs
    • Blockchain
    • Futuremash
    • Regulators
    • Scams
    • Crypto 101
  • HODLX
    • Latest Stories
    • FAQ
    • Submit Guest Post
  • INDUSTRY ANNOUNCEMENTS
    • Latest
    • Press Releases
    • ChainWire
    • Sponsored Posts
    • Submit Your Content
  • CRYPTO MARKETS
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Binance Coin (BNB)
  • BEGINNERS
    • What Is Bitcoin?
    • What Is Blockchain?
    • What Does Hodl Mean?
    • How to Pay Your Bills with Bitcoin
    • Best Bitcoin FAQs
    • Example of Bitcoin’s Purpose
    • Cryptocurrency Has Multiple Meanings
    • Authenticator Alert – Securing Your Crypto
  • SUBMIT
    • Guest Post
    • Press Release
    • Sponsored Post
    • Advertise
  • EMAIL ALERTS
  • DAILY HODL MIX
No Result
View All Result
The Daily Hodl
No Result
View All Result

Ethereum’s Native Cryptocurrency ETH Is a Commodity – Just Like Bitcoin, Says Top US Regulator

by Daily Hodl Staff
October 10, 2019
in Ethereum

Heath Tarbert, Chairman of the Commodity Futures Trading Commission (CFTC), says Ethereum’s native token Ether (ETH) is a commodity and may not be classified as a financial security.

While attending the Yahoo Finance All Markets Summit in New York on October 10, Tarbert stated,

“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.”

In December 2018, the CFTC publicly requested feedback to “better inform the Commission’s understanding” of the Ethereum blockchain and its native cryptocurrency Ether.

Tarbert agrees with the US Securities and Exchange Commission’s (SEC) view that Bitcoin and Ether may not be classified as securities. He reveals that the CFTC and SEC are working cooperatively on this matter.

The CFTC first revealed its views regarding Bitcoin and other crypto assets in 2015, when it brought charges against crypto firm Coinflip. However, this is the first time the commodities regulator has provided guidance on Ether. 

Tarbert points out that there’s “ambiguity in the market” regarding the status of many cryptocurrencies, but notes that “similar digital assets should be treated similarly.”

Tarbert also mentions that “forked” assets like Bitcoin Cash (BCH), Bitcoin Gold (BTG) and Ethereum Classic (ETC) should be regulated like the original crypto asset. CFTC’s categorization of each cryptocurrency depends on how each particular asset was developed.

Tarbert explains,

“It stands to reason that similar assets should be treated similarly. If the underlying asset, the original digital asset, hasn’t been determined to be a security and is therefore a commodity, most likely the forked asset will be the same.” 

He adds,

“[The only exception might be if] the fork itself raises some securities law issues under that classic Howey Test.”

The “Howey Test” references a 1946 case in which shares in a citrus grove were being sold. The SEC currently uses it as its north star to determine whether a cryptocurrency has the characteristics of a financial security. 

SEC director of corporate finance Bill Hinman noted last year that newly minted tokens are most likely securities because they’re sold with “the promise that the assets will be cultivated in a way that will cause them to grow in value, to be sold later at a profit,” and “typically are sold to a wide audience rather than to persons who are likely to use them on the network.”

Hinman says Bitcoin and Ether don’t meet this criteria due to their decentralized nature. In other words, BTC and ETH are not controlled by third parties “whose efforts are a key determining factor in the enterprise.” 

In response to a question about whether the Howey Test is still relevant today, Tarbert says,

“I think the analysis is pretty sound. It has stood the test of time. Ultimately it goes to the fundamental question: is this something that is being used for capital raising, and are you investing in an enterprise, or are you buying something that has tangible store of value in and of itself?”

Tarbert also says it’s possible for a new digital currency to initially be classified as a security, and then turn into 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.”

Tarbert, who took over the role of CFTC head in July 2019, also notes that Ether-based futures contracts might begin trading on US markets in the near future. 

[the_ad id="42537"] [the_ad id="42536"]
Check Latest News Headlines


 
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Submit a Press Release

Industry Announcements

  • Radix Babylon Upgrade Marks New Era for Web 3.0 User and Developer Experience
    September 28, 2023
  • Tyrion Set To Decentralize the $377 Billion Digital Advertising Industry
    September 25, 2023
  • Hydranet Launches Layer Three Dex – A Game Changer for Trustless Cross-Chain Trading
    September 25, 2023
  • Ottochain Homage to EVMOS and Ethereum Layer Two
    September 21, 2023
  • Algorand Foundation Announces Build-a-Bull Hackathon in Collaboration With AWS
    September 20, 2023
  • OKX Achieves SOC 2 Type II Certification, Demonstrating Its Industry-Leading User Safety, Security and Compliance Standards
    September 20, 2023
  • Dexalot Unveils SimpleSwap and SimpleView Features for Enhanced User Experience
    September 19, 2023
Submit a Guest Post
ADVERTISEMENT
Bitcoin
$28,272.58
$28,272.58
4.23%
Ethereum
$1,729.50
$1,729.50
2.99%
Cardano
$0.264521
$0.264521
3.5%
XRP
$0.521466
$0.521466
0.75%
Dogecoin
$0.063452
$0.063452
2.01%

Spotlight

  • Bitcoin Flashing Relative Strength Against Stock Market Despite Deteriorating Macro Conditions: Analytics Firm
    September 25, 2023
  • Many Altcoins Won’t Recover After Massive Collapse, Says Crypto Analyst Benjamin Cowen – Here’s His Forecast
    September 25, 2023
  • Here’s When Bitcoin (BTC) May Print the Top of Its Post-Halving Bull Run, According to Crypto Strategist
    September 25, 2023
  • Ex-Goldman Executive Says Liquidity Injection Will Ignite Explosion in Crypto Space Amid Rapid Building
    September 25, 2023
DON'T MISS A BEAT
Crypto headlines delivered daily
to your inbox
BTC, ETH, XRP news alert options
By joining The Daily Hodl news list you agree to our
Terms and Conditions and Privacy Policy.
Featured Image: Shutterstock/Billion Photos

Covering the future of finance, including macro, bitcoin, ethereum, crypto, and web 3.

Categories

Bitcoin • Ethereum • Trading •
Ripple and XRP • Altcoins •
Blockchain • Regulators •
Scams • Crypto101 • HodlX •
Futuremash • Financeflux •
Industry Announcements

 

ABOUT US | EDITORIAL POLICY | PRIVACY POLICY
TERMS AND CONDITIONS | CONTACT | ADVERTISE

JOIN US ON TELEGRAM

JOIN US ON X

JOIN US ON FACEBOOK

COPYRIGHT © 2017-2023 THE DAILY HODL

No Result
View All Result
  • FEATURES
    • News
    • Bitcoin
    • Ethereum
    • Ripple and XRP
    • Altcoins
    • Financeflux
    • Trading
    • NFTs
    • Blockchain
    • Futuremash
    • Regulators
    • Scams
    • Crypto 101
  • HODLX
    • Latest Stories
    • FAQ
    • Submit Guest Post
  • INDUSTRY ANNOUNCEMENTS
    • Latest
    • Press Releases
    • ChainWire
    • Sponsored Posts
    • Submit Your Content
  • CRYPTO MARKETS
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Binance Coin (BNB)
  • BEGINNERS
    • What Is Bitcoin?
    • What Is Blockchain?
    • What Does Hodl Mean?
    • How to Pay Your Bills with Bitcoin
    • Best Bitcoin FAQs
    • Example of Bitcoin’s Purpose
    • Cryptocurrency Has Multiple Meanings
    • Authenticator Alert – Securing Your Crypto
  • SUBMIT
    • Guest Post
    • Press Release
    • Sponsored Post
    • Advertise
  • EMAIL ALERTS
  • DAILY HODL MIX

© 2023 The Daily Hodl