U.S. Court Judge Rules Ether (ETH) as Commodity in Dismissal of Lawsuit Against Uniswap
Summary:
A U.S. District Court judge has dismissed a class action lawsuit against Uniswap, ruling that Ether (ETH) is a commodity. This ruling aligns with previous decisions on cryptocurrencies and raises questions about regulatory jurisdiction.
A judge in the United States District Court has ruled that Ether (ETH) is a commodity, dismissing a class action lawsuit against Uniswap, a decentralized exchange. Judge Katherine Polk Failla stated that both ETH and Bitcoin (BTC) are considered "crypto commodities." This distinction was the basis for her decision to dismiss the case, as she did not believe Uniswap's token sales were subject to the Exchange Act. It is worth noting that Failla is also presiding over the Securities and Exchange Commission's lawsuit against Coinbase and has prior experience with crypto cases involving Tether and Bitfinex. While this ruling does not provide a definitive classification of Ether's legal status in the U.S., it aligns with other court decisions on cryptocurrencies. For instance, a July ruling declared XRP a security when sold through programmatic sales on exchanges. The Securities and Exchange Commission and the Commodity Futures Trading Commission have been at odds regarding jurisdiction over cryptocurrencies. While the SEC claims that everything except Bitcoin falls under its purview, the CFTC considers ETH and other cryptocurrencies as commodities. Various bills are currently being considered by U.S. lawmakers to provide regulatory clarity and determine the authority of these regulatory bodies. These bills propose different approaches, such as creating a categorization process for cryptocurrencies or granting power to a specific regulator. The Digital Asset Market Structure Bill, for example, requires SEC certification of cryptocurrencies to demonstrate sufficient decentralization before granting them commodity status. According to DeFi Dad, a prominent figure in the decentralized finance space, Ethereum is undervalued but continues to grow.
Published At
8/31/2023 12:37:03 AM
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