A United States District Court judge has called Ether (ETH) a commodity in her dismissal of a class action lawsuit against the decentralized exchange Uniswap.

In an Aug. 30 dismissal order of the case brought by Uniswap users who claimed they lost money due to scam tokens on the exchange — Judge Katherine Polk Failla wrote ETH and Bitcoin (BTC) were “crypto commodities.”

The distinction was also part of her reasoning for dismissing the case — Failla said she wasn’t convinced by an argument that Uniswap’s token sales were subject to the Exchange Act.

Interestingly, Failla is also the judge overseeing the SEC lawsuit against Coinbase. She has also had previous experience in overseeing other crypto cases in the past, including one involving Tether and Bitfinex. 

While her comment is not a distinct ruling on Ether’s legal classification in the U.S., it comes as other judges have made decisions on cryptocurrencies such as a July ruling classing XRP (XRP) as a security when sold through programmatic sales on exchanges.

In recent years, two U.S. financial regulators, the Securities and Exchange Commission and the Commodity Futures Trading Commission have tussled over jurisdiction concerning cryptocurrencies.

SEC chair Gary Gensler had once claimed “everything other than Bitcoin” is a security under his agency’s remit.

Meanwhile, the CFTC has laid claim to ETH and other cryptocurrencies as commodities — per a suit it filed against Binance in March for alleged Commodities Exchange Act violations.

Related: SEC’s first deadlines to approve 7 Bitcoin ETFs coming over the next week

However, U.S. lawmakers are yet to decide how the SEC or CFTC will be handed authority over crypto.

Multiple bills to provide digital asset regulatory clarity are inching their way through Congress which vary in how to divvy authority between the two regulators.

Some, such as the Financial Innovation and Technology for the 21st Century Act, aim to create a process for categorizing cryptocurrencies into either securities or commodities.

Others explicitly hand power to a regulator such as the Digital Commodity Exchange Act which sees crypto spot exchanges registered and regulated under the CFTC.

The Digital Asset Market Structure Bill, meanwhile, would see cryptocurrencies undergo SEC certification to prove adequate decentralization before being given commodity status.

Magazine: DeFi Dad, Hall of Flame: Ethereum is ‘woefully undervalued’ but growing more

Read More: World News | Entertainment News | Celeb News

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like

Serum exchange rendered ‘defunct’ following the collapse of Alameda and FTX

The Solana-based decentralized exchange (DEX) has notified its community that the collapse…

Crypto.com backs out of $495M sponsorship deal with UEFA Champions League: Report

Cryptocurrency exchange Crypto.com has reportedly dropped out of a half-billion-dollar sponsorship deal…

‘Mr. Yen’ says Japan’s currency may fall to 160 and beyond

The yen may fall through the more-than three-decade low it reached last…

Bitcoin miner Riot says chip shortage, climate-focused regs are risks to profit

Bitcoin (BTC) miner Riot Platforms said that an ongoing chip shortage, the constant…