Investing.com – (BTC) and (ETH) are now officially recognized as digital products by a court ruling. A triumph for the crypto community? Maybe. But behind this apparent victory lurk deeper and more threatening shadows.
Court confirms merchandise status
On Wednesday, Rostin Behnam, chairman of the U.S. Commodity Futures Trading Commission (CFTC), confirmed that an Illinois court has officially recognized the status of Bitcoin and Ethereum as digital commodities under the Commodity Exchange Act.
This decision could either revolutionize the cryptocurrency world or plunge it into regulatory chaos. This classification directly contradicts the statements of SEC Chairman Gary Gensler, who has so far only wanted to recognize Bitcoin as a commodity and classify the rest of tokens as securities.
SEC vs CFTC: The Clash of the Titans
Gensler’s stance led to a massive crackdown on major cryptocurrency firms like Binance, Coinbase (NASDAQ:), and Labs last year. The SEC claimed that many of the tokens offered for trading were securities under the Howey test and therefore needed stricter regulation.
The CFTC, backed by the recent court ruling, considers Bitcoin and Ethereum as commodities and claims oversight of these digital assets. This power struggle between authorities could lead to even more confusion and uncertainty in the cryptocurrency market.
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Power struggle and chaos in the market
Senator Roger Marshall called for full responsibility for digital assets to be transferred to the CFTC. Behnam, who had previously expressed his pro-crypto stance, agreed. This could simplify regulation of the industry, but the power struggle between the SEC and CFTC is likely to continue to create uncertainty. Behnam stressed the need for clear regulatory frameworks at the Milken Institute Conference. Without clear guidelines, retail investors and the market as a whole could suffer.
Conclusion: A Pyrrhic Victory?
The classification of Bitcoin and Ethereum as commodities could be a double-edged sword for the cryptocurrency community. On the one hand, it creates clarity and could pave the way for wider acceptance. On the other hand, the power struggle between the SEC and CFTC creates enormous uncertainty, which hurts the market in the long run. Is this a victory for cryptocurrencies or just another nail in the coffin? The future will tell.
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