- SEC chair Gary Gensler has already called all cryptocurrencies except Bitcoin as security.
- Both the SEC and the CFTC have earlier argued over authority.
In dismissing a class action lawsuit against the DEX, Uniswap, a judge in the United States District Court described Ether as a commodity. On August 30, Judge Katherine Polk Failla dismissed a lawsuit filed by Uniswap users who claimed they lost funds on the platform owing to scam tokens by declaring ETH and BTC to be “crypto commodities.”
The judge mentioned that she was not persuaded by a dispute that Uniswap’s token sales were within the purview of the Exchange Act because of this difference. Judge Failla, interestingly, is also presiding over the SEC’s case against crypto exchange Coinbase. She has also managed other cryptocurrency concerns before, such as the one between Tether and Bitfinex.
Moreover, other justices have already reached rulings on cryptocurrencies, such as a July order that categorized XRP as not a security when sold on the secondary market.
Dispute Over Authority
In recent years, the SEC and the CFTC, have argued over which agency has authority in regards to cryptocurrencies. SEC chair Gary Gensler has already called all cryptocurrencies except Bitcoin as security.
The Commodity Futures Trading Commission (CFTC) on the other hand has sued Binance for violating the Commodities Exchange Act, claiming that ETH and other cryptocurrencies are commodities. U.S. legislators have not yet decided whether the SEC or CFTC would be given jurisdiction over cryptocurrencies.
There are a number of proposals making their way slowly through Congress with the goal of providing legislative certainty in regards to the sector.
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