Bitcoin and Now Etheruem are Commodities- What Does That Mean for the Cryptocurrency Market?


Bitcoin and Now Etheruem are Commodities- What Does That Mean for the Cryptocurrency Market?

Heath Tarbert of the CFTC has declared that it is likely Ethereum is a commodity. It has been widely accepted that cryptocurrencies are not securities. What are the implications of this statement, and what could the future hold for Etheruem now?

Bitcoin is a commodity, and Bitcoin futures currently trade on the market. For a great law article detailing the ruling that determined Bitcoin and cryptocurrencies are commodities, read the article below:
https://news.law.fordham.edu/jcfl/2018/10/28/its-official-virtual-currencies-like-bitcoin-are-a-commodity/

A large part of the determination that Bitcoin and now Ethereum are commodities revolves around their decentralized origination. Trading cryptocurrencies is not classified as trading securities, which insulates and protects these assets. Cryptocurrencies are uniform in nature, and act as commodities in their trading patterns as well.

If an asset is deemed to be a security by a regulatory agency, including the SEC, that asset will come under increased scrutiny and regulation. Holders and sellers of the security must be verified and certified, and records must be maintained in accordance with security law.

The immediate implications of the determination that Ethereum is a commodity like Bitcoin is that Ethereum futures may be launched soon. Commodity futures markets may pave the way for Bitcoin and Ethereum derivative products. The Bitcoin ETF has been delayed several times, and the futures market will likely serve as the major vehicle of investment for the foreseeable future.

Sources:

Originally published in my Publish0x account I own at:

https://www.publish0x.com/introducing-myself-on-publish0x-wstanley224/bitcoin-and-now-etheruem-are-commodities-what-does-mean-cryp-xrxpmj

Also published in my Minds, Weku, Hyperspace, Sapien, Whaleshares, Golos, Serey, and Bearshares accounts I own.

Follow me on Steemit at entrepreneur.one.

Picture from Pixabay.

https://www.coindesk.com/cftc-chairman-confirms-ether-cryptocurrency-is-a-commodity

https://www.google.com/amp/s/cryptobriefing.com/eth-futures-commodity/%3Famp

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BitcoinCrazy
BitcoinCrazy

I am a writer, aerospace worker, cryprocurrency enthusiast and entrepreneur. I am a blogger and am eager to join this community.


Introducing Myself on Publish0x-Wstanley224
Introducing Myself on Publish0x-Wstanley224

Hello Publish0x community! I am a blogger who is excited to join you. I enjoy writing about cryptocurrency, life, business and the financial industry. Join me on my journey, I am glad to be here.

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