Commodity Futures Trading Commission (CFTC) Chairman Heath Tarbert in All Markets Summit by Yahoo Finance spoke about Ether(ETH) being a commodity and thus should fall under the jurisdiction of CFTC. He further hinted on Ether Futures trading in the US markets in the near future.
CFTC Chairman Speaks About Ether
Tarbert in the summit also said that CFTC had always been clear on Bitcoin and the fact that it is a commodity. He further mentioned that per his view as the Chairman of the CFTC, Ether is a commodity. Thus, resonating with SEC’s previous ruling that Bitcoin and Ether are not securities. Furthermore, he said that CFTC is working in close cooperation with the SEC to provide clarity on these issues.
Long back in 2015 CFTC had said that Bitcoin and other virtual currencies are commodities. This was even before the SEC deemed cryptos as commodities. Interestingly, this is the first time CFTC has spoken any such thing about Ether.
“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 continued saying,
“Unless the fork itself raises some securities law issues under that classic Howey Test.”
The “Howey Test” refers to a 1946 case involving the selling of shares in a citrus grove that the SEC now uses as its north star in determining whether a digital currency behaves like security.