Crypto-currencies like Ethereum and Bitcoin are a new phenomenon. Add to that the over 2900 Coins to fulfill many different purposes. This is exactly why it is not set for the legislator is not always easy, whether the corresponding Token to a security (engl. The “Security”) or a commodity (engl. “Commodity”) is. This distinction is, however, from a legal point of view is very important, for example in tax questions. Now the head of the CFTC has classified the Token of the Ethereum network “Ether” as a commodity.
Contents
Ethereum is like Bitcoin is also a commodity
In an Interview with Yahoo Finance yesterday, Thursday, Heath Tarbert, head of the Commodity Futures Trading Commission (CFTC), expressed his opinion as to whether it is the native Token of the Ethereum network to a commodity or a security. Tarbert is clearly and classifies ethers, such as Bitcoin some time ago, also, as an economic asset:
We have expressed in the case of Bitcoin, very clear: Bitcoin is a commodity. We have not said anything about the Ether – until now. As Chairman of the CFTC, I am of the opinion that Ether is a commodity.“
Tarbert agrees with the view of the U.S. Securities and Exchange Commission (SEC) that Bitcoin and Ether shall not be used as securities classified. He also suggests that the CFTC and SEC to work together in this matter cooperatively.Trade on the most successful Crypto-exchange. If you’re looking for a reputable point of contact, to act with real crypto currencies, then take a look at our Binance Test 2019! In this article, we have analyzed all the features and benefits of the crypto-exchange in more detail and evaluated. The most the most popular crypto-stock exchange today! Now on Binance sign up.
Ethereums decentralization as a factor
According to the Director for corporate Finance of the SEC, Bill Hinman, the decentralization with Ethereum and Bitcoin a crucial role as to why these are not securities.Hinman says that Bitcoin and Ether meet the criteria of a security due to their decentralized nature. In other words, BTC and ETH are not under the control of a third party, “their efforts are a key factor in the Company”.
Classification of the Token is not always easy
The classification in “securities” and “asset” is not always as easy as the clear statements of the two experts suggest. So many features that it has given so far on the financial markets with crypto currencies.According to Hinman, the Coins at the time of Mining are likely to be a kind of securities, because they are only traded for the purpose of increase in value and not to fulfil a purpose in the network.Other features there are Hard-Forks, and ICOs. When there is a new crypto-currencies, due to Hard Forks should be considered according to Tarbert the same rules as for the origin of Coin. In addition, it should also be possible, that the Token is in the case of the ICO, a value paper, and then in the course of time by their function in the network is a commodity.What do you think of the estimates of the CFTC? You see, Ether, and Bitcoin as a commodity? Come in to our Telegram Chat and talk with the experts and the Community. Subscribe to our News channel to not miss any News. (Image Source: Shutterstock)