CFTC Stealth Claim that BTC, ETH and LTC are "Commodities"

in crypto •  2 years ago 

The CFTC is playing the same game as the SEC of over-reaching its jurisdiction. This is also done in the same underhand way of smuggling declarations within lawsuits that have no basis within any legal definition. In this case is their claim that some cryptos are "commodities".

Bitcoin and Ether Are Commodities, Says CFTC in Binance Lawsuit

According to the complaint, “Binance, under Zhao’s direction and control and with Lim’s willful and substantial assistance, has solicited and accepted orders, accepted property to margin, and operated a facility for the trading of futures, options, swaps, and leveraged retail commodity transactions involving digital assets that are commodities including bitcoin (BTC), ether (ETH), and litecoin (LTC) for persons in the United States.”

Bitcoin and Litecoin are both POW chain coins, whereas Ether is now a POS coin. Yes, metals are not the same as pork bellies, yet both are treated as commodities. Without launching into a full essay, many coins have accumulated functions that make it unclear what their primary function is, such as being both a utility and governance token. An appeal to primary goods that are "natural" is also anachronistic in an age of synthetics, such as diamonds and semiconductors.

On Blurt, it should be clear - should - that Blurt Power is not in BLURT tokens but in VESTS; this is sadly obfuscated by calling it BP, but if one looks at transactions, rewards are paid in both coins, hence they are not the same.

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  ·  2 years ago  ·  

US CFTC Chief Reinforces that Ethereum Is Commodity

During his recent testimony to lawmakers CFTC Chairman Rostin Behnam said that he believes Ether to be a commodity since it’s listed on CFTC and its derivatives marketplace.

You have to be deeply stupid to buy this lame argument. The CFTC is a weird regulator in that it covers Commodities and Futures; obviously commodity futures are OK, but stock futures are a regulatory mess.

Futures and options on futures based on broad-based security indexes are under the exclusive jurisdiction of the CFTC. This is in contrast to security futures products, including futures on narrow-based security indexes, which are subject to the joint jurisdiction of the CFTC and the Securities and Exchange Commission. CFTC

Crypto has just highlighted this total mess.

  ·  2 years ago  ·  

That ETH is a Commodity is even more of a joke - but be vigilant, it is a clue of things to come.

  ·  2 years ago  ·  

Many jurisdictions still define commodities in terms of primary natural products, even with some level of refining or processing. But this may need to be expanded to included primary synthetic products, eg diamonds are commodities, but then so must synthetic diamonds (without going into the global diamond pricing scam.)

We have already seen this with Electricity as a commodity - I think crypto should go down that route, as a synthetic commodity akin to electricity. Remember that all "digital" products are worth shit once the power goes out!