Is ETH a commodity now?

[Abiky]

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 )

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. 

[batang_bitcoin]

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 )

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.

[asrinur]

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.

[Abiky]

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.

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?

[Ben Barubal]

     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.

[o48o]

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?

SEC has decided it's now commodity, so we don't need to wonder about that, and if they don't see it as a security, no one has reason to. Centralization doesn't make it a security and idea of whole centralization around it is debatable anyway imho, especially when we compare it to other cryptos, like bitcoin. And i don't see PoS centralizing it any more then huge mining farms do to PoW coins. In same way, Bitcoin is centralized around people with biggest rigs and most money to run them when price of electricity is high and price of BTC low.

And vitalik isn't the main guy anymore, there are numerous active developers, and if we compare the numbers of active developers on both of them, eth doesn't seem to be that centralized around the main team.

[Abiky]

SEC has decided it's now commodity, so we don't need to either, and if they don't see it as a security, no one has reason to. Centralization doesn't make it a security and idea of whole centralization around it is debatable anyway imho, especially when we compare it to other cryptos, like bitcoin. And i don't see PoS centralizing it any more then huge mining farms do to PoW coins. In same way, Bitcoin is centralized around people with biggest rigs and most money to run them when price of electricity is high and price of BTC low.

And vitalik isn't the main guy anymore, there are numerous active developers, and if we compare the numbers of active developers on both of them, eth doesn't seem to be that centralized around the main team.

I guess fear from crypto industry giants made the SEC step back from labeling ETH a security. But we can't deny ETH is less-decentralized than Bitcoin itself. Especially with how Vitalik still has influence over the project (even though many developers are working on it). The community considers Vitalik as a leader. Could you imagine what would happen with ETH's price if something bad happens to Vitalik? Bitcoin didn't have a problem with Satoshi Nakamoto's departure from the project because nobody knew who he was. People were following the coin itself. Not the one person (or group of persons) behind it.

I agree that huge mining farms centralize the Bitcoin network. Fortunately, miners alone aren't the only ones who're part of network consensus. They're separate from node operators. In the case of ETH, stakers (validators) also constitute themselves as node operators allowing them to take full control of network decisions. At least, that's how I understand it (please correct me if I'm wrong). With ETH now a commodity, the CFTC will now be in-charge of regulating it (not the SEC). Hopefully, ETH sticks to its original values of decentralization for the benefit of all.

[Psalms23]

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 )

Well, while the SEC has classified ETH as a commodity, other forces, such as Congress, do have the power to influence or change this decision.

Congress could pass new laws or regulations that redefine the classification of cryptocurrencies, including Ethereum. Additionally, other regulatory bodies or legal challenges could also impact how ETH is classified in the future. So, while the SEC's stance is influential, it's not the final word on the matter, you what what I mean.

[o48o]

I guess fear from crypto industry giants made the SEC step back from labeling ETH a security. But we can't deny ETH is less-decentralized than Bitcoin itself. Especially with how Vitalik still has influence over the project (even though many developers are working on it). The community considers Vitalik as a leader. Could you imagine what would happen with ETH's price if something bad happens to Vitalik? Bitcoin didn't have a problem with Satoshi Nakamoto's departure from the project because nobody knew who he was. People were following the coin itself. Not the one person (or group of persons) behind it.

I agree that huge mining farms centralize the Bitcoin network. Fortunately, miners alone aren't the only ones who're part of network consensus. They're separate from node operators. In the case of ETH, stakers (validators) also constitute themselves as node operators allowing them to take full control of network decisions. At least, that's how I understand it (please correct me if I'm wrong). With ETH now a commodity, the CFTC will now be in-charge of regulating it (not the SEC). Hopefully, ETH sticks to its original values of decentralization for the benefit of all.

Bitcoin has an advantage for having a pseudonymous creator for sure, and i regocnize that my thoughts are controversial on the subject.

And i am not sure what you mean by "something", but if you are implying that if Vitalik died, i would assume that it would probably just raise value and trust towards eth, as Vitalik would have been the biggest key element that people are referring to, when they talk about eth being centralized.

But if Vitalik changed his mind radically on something code related, i am sure that many people would follow and eth would fork. So in that way i see your point, but that would only fork eth, just like bitcoin has been forked in the past. And like i already pointed out, vitalik isn't in charge of the development anymore. There are LOTS of other insanely talented people working on it.

And from what i gather, yes, i think you are correct and it's CFTC instead of SEC now. Let's hope for the best on their values and decentralization. After all, it's for people, and needs people to be valuable.

[Cryptoababe]

I think for the SEC to approve ETH as a commodity, it would have to pass through Congress first. So far, I haven't seen anyone but the SEC making decisions on this matter. I think their decision is not final.

[Godday]

I think for the SEC to approve ETH as a commodity, it would have to pass through Congress first. So far, I haven't seen anyone but the SEC making decisions on this matter. I think their decision is not final.

I agree with you and with everyone else here. Even though the SEC makes Ethereum a commodity, Congress has higher power than the SEC. This is a decision that is not final and I am sure we will get better results in the future.

[DeathAngel]

Ethereum is a security, one guy controls what happens with it. A big % of the supply was pre-mined. Being a security doesn’t mean Ethereum is a bad investment, it’s done so well, many people have become very wealthy by investing in it plus the chain provides huge value to all ERC-20 tokens. It is definitely not a commodity.

[CK485]

I agree with you and with everyone else here. Even though the SEC makes Ethereum a commodity, Congress has higher power than the SEC. This is a decision that is not final and I am sure we will get better results in the future.

from the large number of holders because of its users in blockchain and the development of decentralized financial applications by investing in it, remaining convinced that ethereum is a commodity, this is a decision taken and is confident that future steps will get good results with the base for many advances with increasingly better technology and their decisions It's not final yet and we can see developments in the future.

[AVE5]

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 )

ETH has been around the horizon of cryptocurrencies and has intensively maintained reputable margins leading AltCoins as a digital assets that proceeds on its utilizing transactions in the decentralized blockchains.
So, I don't know if any course it has become a commodity. And if I may ask, is it a commodity in a centralized or decentralized modification?
I was Interested to read better on the link provided but seems an error and link not supported.

[justdimin]

ETH has been around the horizon of cryptocurrencies and has intensively maintained reputable margins leading AltCoins as a digital assets that proceeds on its utilizing transactions in the decentralized blockchains.
So, I don't know if any course it has become a commodity. And if I may ask, is it a commodity in a centralized or decentralized modification?
I was Interested to read better on the link provided but seems an error and link not supported.

I would say it is a bit centralized, but also it's like gold or silver basically. Doesn't mean anyone owns it, doesn't mean it's like stocks, there isn't a CEO, it is basically price of grain or whatever, and you can bet on those things. But at the same time, crypto and commodity are different things, mainly because one of them could be used as a currency. Meaning that, while I agree that ETH could be called commodity for one way of using it, but it could also be called currency for another part.

So, I do not know what people should call it, SEC could call it a commodity if they want to, it is their own right and they can do whatever they want to, but I personally wouldn't call it a commodity right now, because it can still be used.

[Abiky]

I would say it is a bit centralized, but also it's like gold or silver basically. Doesn't mean anyone owns it, doesn't mean it's like stocks, there isn't a CEO, it is basically price of grain or whatever, and you can bet on those things. But at the same time, crypto and commodity are different things, mainly because one of them could be used as a currency. Meaning that, while I agree that ETH could be called commodity for one way of using it, but it could also be called currency for another part.

So, I do not know what people should call it, SEC could call it a commodity if they want to, it is their own right and they can do whatever they want to, but I personally wouldn't call it a commodity right now, because it can still be used.

No CEO? You might want to double-check your phrase. Especially when Vitalik is at the center stage of the project. Everyone follows him as he were some sort of celebrity or god. Just like foolish investors following Elon Musk to buy/sell Dogecoin. Some say many developers are working on ETH, but without Vitalik, I fail to see how the project would be a success. He would've stayed anonymous like Satoshi, and no one would even care if he was alive or dead. His public image can negatively-affect ETH in the long term.

I still consider ETH a security because of the PoS mechanics. You're entrusting your funds to big exchanges and corporations. It's a lot different from mining where you can easily set up a rig or farm at home (even if there are companies running huge mining farms). Both miners and node operators determine network consensus. Not like Ethereum where stakers (validators) are also node operators. The SEC just backed down because of fear from giants like BlackRock, Fidelity, and VanEck. Not because it was wrong. Money talks, right? Why should we be worried about this? As long as we have a truly-decentralized coin like Bitcoin, nothing else matters.