Bitcoin Forum

According to the recent SEC filing you all know, ETH is now a commodity - highlight: according to the SEC

Is there still a chance that some other force (e.g. congress) will overthrow SEC's right to make this decision?


(Source: SEC mentions ETF funds as Commodity-Based Trust Shares: https://www.sec.gov/files/tm/lk87adfs99.pdf )

In theory yes they can definitely do something that can overthrow SEC’s decision but the question here is would they? It’s possible but quite unlikely unless they find something they could use to go against the decision. It would be then a long process and it would go through a lot of levels. It wouldn’t be an instantaneous decision so even if they decide that it wasn’t the right decision it would still take a long time to implement it.

It can be traded as commodity. Commodity market is a different market than crypto and has it's own way of operation and taxes.
I don't think it makes all of ETH as commodity in the US, it's just that ETH issued as ETF is traded as commodity. People can still have and trade ETH on the network or on exchange but ETF issuers can also buy and sell ETH ETF which might be backed by an equal number of ETH locked somewhere.
I don't think the congress or the president of US would undo the decision of SEC as SEC themselves are a very conservative in matter of economic decisions and they might have already got pre-approval in doing that.

Ether in general and professional speaking is not a commodity, it is a security.

Ethereum is centralized to an extent. It was premined as an ICO. Its network is using PoS algorithm in which there are people that staked their coins to earn more coins. Do you see something like these with what are called commodities? No. But are securities like that? Yes.

Ethereum is a security and not a commodity.

Well, that is the result of their market analysis and it supports their claims to consider that ETH is no a commodity. But I think there is still a need to further their survey and market analysis to enhance the proof that it is worth saying it is now a commodity other than a usual coin used to trade with USDT and any stablecoins.

For now, I couldn't disagree but rather give support to such a claim believing that they ate right. In fact, ETH is known for its potentiality and popularity. We can't deny also that many people are buying and holding this just like what they did to Bitcoin.

I know the SEC are planning for the next step they will do to make this analysis official and be recognized.

Gensler must have been crying because of this. whether its a commodity or security, it doesn't matter when its ETF is already approved but Gensler will be losing power over ETH and its gonna be in the hands of CFTC.

the scene in politics has changed after Trump did the 180 turn. the people in the government are going to be making crypto the next asset class to go to.

About CFTC, i see that they are currently have a case against kucoin, about usual illegal platform thing. As one said above, ethereum is better suited as security, but as CFTC is currently chasing kucoin so somehow they decide to stamp it as commodity?

The SEC has been the order of the day and we should not be surprised of the drama we have been experiencing for months now.
I think the sec is confused when it comes to decisions making and the roles need a strong force that would always take a swift decision not trying to take more time when things meed to fix urgently.
The sec has the power to decide but if they don't act well or do things in the normal way that ought to be with too much procrastination.

At least now the SEC has accepted several proposals being worked on by Ethereum and there are only a few steps left for Ethereum to enjoy the fresh air that will happen soon. It is also certain that Ethereum will trigger an altcoin bullrun in 2025, so we have to wait patiently.

Those are a very good summaries on the arguments which could be yield by the authorities within the United States to clasify Ethereum as a security, instead a community, in my opinion. Probably the worst steps which was taken by the Ethereum community was to change their mining model to prooof of stake,.sure, it is more energy friendly and it helped to decrease the price of GPUs worldwide,.but assuming the big genius in informatics Vitalik is,.he could have come.uo.with anything completely different which would have saved zeyehrruk.from ever being labeled as a security instead a community.
By the way, I don't not have a problem with Ethereum had created an Initial coin offering from the beginning, they obviously were aware of their money they needed to push the project forward and they indeed did , not good coins and tokens which deliver on their plans need to have a fair launch, like Bitcoin did back in the earliest days of the market. Ethereum.continues to be reliable and the blue chip coin for those interested in dece realized smart contracts.

https://i.postimg.cc/1zLJtzcT/fwe2lfg2.png

Don't worry buddy, congress gave an opposite reaction for the ETH ETF approval. They are now thinking of finishing the crypto regulatory framework as soon as possible because the acceptance of crypto ETF means if public have been also accepting crypto to be a new commodity in our life.
The positive impact will be coming soon. I think cynthia lummis's tweet has been making everything clear. They are not working to the crypto regulations as soon as possible.


Just see the tweet has been published by cynthia.

Ethereum is only second to bitcoin but being second to bitcoin encompasses a lot of things.

With hundreds of coins and tokens being released every day, ethereum has made itself the leader of altcoins. It has the most investors and more people are surely going to be looking at its direction coming 2025. With the addition of etf approval, ethereum may solidify itself as a leader of the altcoin sector.

Etf approved kind of means unstoppable and untouchable now. We just have to wait and see how high it can go.

I truly believe that Ethereum is doing great for blockchain technology and will continue to innovate. Many say that ETH is a commodity but ETH can never be a commodity. Crypto has no ownership. Crypto runs on its own rules. No government regulations are issued here. Even the SEC's own guidance states that a digital asset cannot move away from being a security because it becomes sufficiently decentralized over time, though critical details are lacking.

Why would the Congress do it when half of them are in the pockets of financial institution. It is a capitalist economy where lobbying is common. If the Congress tries to change the ruling of the SEC they will need the votes which they might not be able to get. Right now it is just been approved and their are a few changes that need to be done by those who got the approval before trading starts.

What would be the benefit of overthrowing the decision though? Because in my knowledge about corrupt politics, as long as there's no benefit to be had when it comes to politicians, they're not taking actions really quickly, unless someone "bribes" three or more of the seats in the congress to do something about some legislations, overthrowing might not be the best decision at all. I wouldn't consider ETH as a commodity right now, I feel like it's more of a currency rather than something that you can consume because that's where I base my consideration of whether you can consume it or it's a type of service.

He indeed passed BTC and ETH to CFTC, but SEC will still continue regulating most of the crypto industry like before.
Why? Because we are talking about derived products here. ETFs are securities without a question. US exchanges are under SEC supervision already. Purely onchain volumes are dwarfing.

What opposite reaction? When they say that ETH is an asset and not a commodity? Not sure if they mean it, I mean maybe they only use that term because each of us has also been using it and we interchanged it sometimes with currency and even a commodity, or whatever term that we can think of.

This shows how versatile cryptos are. With that being said, I think it is not a big deal if whatever term they will be using to ETH or to any other cryptos and I'm sure that both or all of them are still going to be valid. The real one that ETH supporters are going to dislike is if there is someone who will be against the approval of its ETF but luckily there's none :).

Everything can still be done with other powers such as congress to cancel the SEC Approved for ETH to become a commodity. Now Ethereum has become an argument for many people in trading. We don't need to worry about that, everything can change with the regulations that are set according to the current flow, at least the SEC has done some work on Ethereum, we just have to wait for the next news.

Well, let me say that I do not have time for all the SEC's nonsense, it is trying to create confusion in the cryptocurrency industry and people are falling fast for it. For me, this is a plan to further weaken the crypto industry and for them to take more control, but people are not sensitive and futuristic about it. If they continue like this by dividing the crypto market unchallenged, it will get to a point later in the future that they might say they want this class of coin/token and will clamp down on the others.

First, they are successful in stating that Bitcoin is not a security, but by virtual of all definitions, meanings and interpretations, it shows that Bitcoin is indeed a security. Now, it is the time of Ethereum just because of the ETF filing and they've started claiming that it is a commodity ( that's if what you claim is true for I did not read it) despite Ethereum not having the characteristics of what I know as "Commodities" that are being traded in the financial market. These are mere ways to creep further into the crypto world so as to regulate it further.

Because with time, they will surely fight most of these cryptocurrencies and cause some never to exist anymore and also block many others from ever being created. This is a mere foundation for that, though it could take decades, but truly, it will make it easier for them to strike. However, I do not have anything against regulation and never will I, since it is helping humanity than causing pain, but for the division they are solely causing for the crypto world unchallenged.

Should the US be the one to always tell the whole what a thing is and what it is not? That is my issue here.

Ethereum have being making a lot of news this few months and weeks back, I guess with the Ethereum etf approval nearing we have to pay close attention to Ethereum in terms of market volatility and bullish movement since if the ETF get approved, this will give Ethereum the same assets value that make it a digital commodities since.


Let us us see what comes along with all of that and how it helps the overall general Ethereum network as with sec approvals and technical development that will support the network when it wants to react to the current market demands.

It's still a security. Any coin with a PoS mechanism will be classified as such by the US government. ETH is becoming more centralized each day, as big players (mainly CEXs) hold a large stake on the network. The ETFs approval will only make matters worse. Would you imagine an scenario where institutional investment companies become validators of the ETH blockchain with customers' stake? It'd be disastrous.

This is NOT what Satoshi wanted in the first place. People don't care because they're only focused on making money. As long as ETFs "pump" market prices, nothing else matters. We're going to have to see if the SEC will change its view on ETH and starts calling it a "commodity". Crypto regulations in the US are still a "mess". We can't predict the future, so lets hope for the best.  :-\

It's very possible to rectify their description of ETH and can overthrow the decision of SEC. Everything is in paper so if there will be changes, they can do it in paper as well. But right now, I don't think that we'd see that anytime soon because it's just getting started. But if they're going to change their description of ETH as a security instead of a commodity, there will be for sure a lot of impact to its price.

I think there are still other forces like Congress that can change this decision. As we know, Congress has the ability to pass a rule or even transfer regulatory authority from the SEC to another body. However, whether Congress wants to handle it or not.

We shouldn't change our perception of ETH from being a security to a commodity. Especially when it's utterly-centralized. The PoS mechanism "kills" it. ETH is now a "corporate coin" where big companies with a lot of money can influence the future direction of the project. You're basically entrusting your ETH to centralized entities. Not to mention, the huge influence Vitalik Buterin has over Ethereum.

If (God forbid) something bad happens to him, Ethereum will be done for good (or at least, it will lose value big time). Talk about being a security. The only real commodity is Bitcoin due to the way it was designed. I have a feeling the SEC will prosecute the Ethereum Foundation due to the sale of "unregistered securities" (the ICO before ETH's launch). Bitcoin never had an ICO or publicly-known founder, so it's safe from harm's way. Lets move on, shall we? :D

     To my knowledge, the conversation is still going on. Moreover, concur with my suggestion or be aware of the CFTC's (commodity futures trading commission) statement that, in response to objections from cryptocurrency exchanges, Ethereum is now openly recognized as a commodity. Their goal is to control ETH in this way.

     The distinction between a commodity and a security should also be considered. Given that commodities are fungible assets, whereas securities are investments in projects, Ethereum may be subject to CFTC restrictions pertaining to derivatives trading if it is categorized as such. More stringent SEC restrictions would apply to it as a security.