Is Crypto a Security, Commodity?
Posted on 06/13/2023
The Commodity Futures Trading Commission (CFTC) wants to manage crypto assets, as does the SEC, based on the recent litigation shaking the crypto world. The CFTC says:
The Commodity Futures Trading Commission (CFTC) wants to manage crypto assets, as does the SEC, based on the recent litigation shaking the crypto world. The CFTC says: “Today, fintech is driving innovation in financial markets across the globe. New technologies are wide-ranging in scope, from cloud computing and algorithmic trading to distributed ledgers to artificial intelligence and machine learning to network cartography, and many others. These technologies have the potential for significant or even transformational impact on CFTC-regulated markets and the agency itself.”
The SEC believes crypto should be registered as a security. Crypto investors have been openly asking for regulatory clarification to no result. However, the court cases should resolve the matter. Regulation is not the only concern, there are also allegations of comingling funds.
Coinbase, for its part, is preparing a years-long legal battle with its legal team saying in the meantime it’s business as usual. Regulating crypto assets may help institutional investors have the confidence necessary for large scale purchases. Yet, regulation would also have the effect of changing the fundamental goal of crypto assets, the decentralized and private currency exchange that was supposed to be free of governments and authorities. The SEC has also cracked down on other crypto players including Kraken, Genesis, and Gemini. The plan for Bitcoin to reach US$ 100,000 seems to be on the ropes, as the current price is closer to a quarter of that, US$ 25,650.
