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Ethereum is a Commodity - CFTC Chairman Heath Tarbert States
🕑 Added 2019-10-19 15:00:03 +0000 UTCAsk and ye shall receive folks... This came out last week via Yahoo Finance.
The leaking out of catorization of cryptos will lead to stabilization and regulation in the market. So now we can look forward to the next MOONSHOT which WILL be Ethereum.
CFTC Chairman Heath Tarbert has said ether, the world’s second-largest cryptocurrency by market capitalization, is a commodity.
Speaking at the Yahoo! Finance All Markets Summit Thursday, Tarbert said he believes ether is not a security.
“We’ve been very clear on bitcoin: bitcoin is a commodity. We haven’t said anything about ether – until now,” Tarbert said. “It is my view as chairman of the CFTC that ether is a commodity.”
Tarbert continued to say the CFTC is working with the SEC on the two cryptocurrencies and have agreed both are not securities. Going forward, the CFTC may allow ether futures to trade on U.S. markets, he suggested.
In May, a senior CFTC official told CoinDesk the agency was ready to approve an ethereum futures contract if it met the correct conditions.
Concerning currencies created by hard forks, Tarbert argued the CFTC’s treatment of each new coin should depend on its creation.
The chairman said:
“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. Unless the fork itself raises some securities law issues under that classic Howey Test.”
https://www.coindesk.com/cftc-chairman-confirms-ether-cryptocurrency-is-a-commodity
What is a Security (finance)?
Securities are broadly categorized into:
- debt securities (e.g., banknotes, bonds and debentures)
- equity securities (e.g., common stocks)
- derivatives (e.g., forwards, futures, options, and swaps).
https://en.wikipedia.org/wiki/Security_(finance)
What is a Commodity?
In economics, a commodity is an economic good or service that has full or substantial fungibility: that is, the market treats instances of the good as equivalent or nearly so with no regard to who produced them.[1][2]
The price of a commodity good is typically determined as a function of its market as a whole: well-established physical commodities have actively traded spot and derivative markets. The wide availability of commodities typically leads to smaller profit margins and diminishes the importance of factors (such as brand name) other than price.
Most commodities are raw materials, basic resources, agricultural, or mining products, such as iron ore, sugar, or grains like rice and wheat. Commodities can also be mass-produced unspecialized products such as chemicals and computer memory.
https://en.wikipedia.org/wiki/Commodity
Comments
Hello dear Shannon, I will forward your question to the team. Warm greetings, Rose
Edd, those names in the list are very telling what's going to happen (derivatives moving into cryptos), and why CFTC and SEC (the adversaries of Reggie Middleton's VERI) support this move.
The above news is good for eth prices, but eth futures mean more derivatives (toxic assets) will come into the crypto realm. Which, by the way, is actually why Bakkt was created. Imho, we won't solve the derivatives problem of say JP Morgan or Deutsche Bank by moving it into the crypto markets. See who the CFTC and SEC work for? Not for the people.
If that happens again, simply adjust the gas price for a better transaction speed.
This is true, given the amount of BTC held by the top 1% of BTC owners.
Thinking back to when Bill Gates was asked about Bitcoin, he paused before simply saying "it isn't for poor people" (or the common masses?) and walked off.
Bob, that was two years ago. They have improved the protocol to include new features which will make ETH a household name. Look at the list of companies involved: https://entethalliance.org/members/ Accenture Advanced Micro Devices (AMD) Baidu AI Cloud BBVA Banco Santander SA The Bank of New York Mellon Citi The Depository Trust & Clearing Corporation (DTCC) Ernst & Young (EY) FedEx Corporate Services, Inc. First National Bank of Omaha Intel Jibrel Network John Hancock Life Insurance (USA) JP Morgan Chase Bank, N.A. Microsoft PricewaterhouseCoopers LLP This was NOT the case two years ago. So we are moving into the implementation phase and many are putting their eggs in an Ethereum basket. Edd@HQ.
Am I the only one that remembers how ridiculously slow the Ethereum network got during the last big boom?
Can you give us some info on when regulations will be clarified for XRP? Thanks!
