CFTC Chairman Says Ether Is a Commodity

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According to a recent report, the new chair of the CFTC, Heath Tarbert, has declared that he believes that ether is a commodity. He also anticipates ether futures trading on U.S. markets in the near future. The CFTC has previously taken the position that bitcoin also is a commodity.  He further indicated that he agrees with the SEC that bitcoin and ether are not securities. He also opined that similar assets should be treated similarly. 

In addressing the relevance of the Howey test, he noted that Howey has stood the test of time and it ultimately goes to the fundamental question of whether the offering is something that is being used for capital raising, and whether you are investing in an enterprise or buying something that has tangible store of value in and of itself.

On another hot issue, he indicated that it is possible for a new coin (ICO) to start out as a security but eventually become a commodity when, over time, it gets more decentralized and has a tangible value.

While these comments add a bit of clarity and more confirmation of positions previously taken, many cryptocurrency-related questions remain unanswered.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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