In a new development, the US Commodities and Futures Trading Commission (CFTC) chairman Heath Tarbert has announced that Ether is a commodity and not a security thus paving way for the launch of the first Ether Futures contracts. He was speaking to the Yahoo! Finance All Markets Summit on Thursday.
The security-commodity debate has been ongoing for a long time and there has been a broad consensus between the Securities and Exchange Commission (SEC) and CFTC on this that Bitcoin and other popular cryptocurrencies are commodities and not securities.
According to CFTC chairman Tarbert:
“We’ve been very clear on bitcoin: bitcoin is a commodity. We haven’t said anything about ether – until now….., It is my view as chairman of the CFTC that ether is a commodity.”
There has been some positive news regarding this in the previous months as a senior official once went on record to say that the CFTC was allowing Ether to be considered a commodity.
It is not yet clear how this will benefit the crypto world as Bitcoin Futures itself has not yet become a lucrative investment option in the futures market as of right now despite being the premier cryptocurrency of the world. It remains to be seen how an ETH-futures contract is received by the community especially considering the fact that the ETH has no hard limit on the maximum number of coins created.
Tarbert discussed a wide range of topics during the panel including Facebook’s stable coin project Libra.
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