Hey, guys,
Court recognizes cryptocurrencies as commodity assets
On Wednesday, U.S. Commodity Futures Trading Commission (CFTC) head Rostin Behnam announced that an Illinois court has officially confirmed the status of BTC and ETH as digital commodities under the Commodity Exchange Act. This decision could either change the world of cryptocurrencies or throw it into regulatory confusion. This approach contradicts the opinion of Gary Gensler, head of the US Securities and Exchange Commission (SEC), who previously recognized only bitcoin as a commodity and wanted to classify the other tokens as securities.
SEC and CFTC standoff.
Last year, Gensler's stance led to sweeping actions against major cryptocurrency companies such as Binance, Coinbase (NASDAQ:COIN), Ripple, and Uniswap Labs. The SEC argued that many of the tokens being offered are securities under the Howey test and require stricter regulation.
This stance by the CFTC will give Ripple additional points in the lawsuit, and that's encouraging for investors at this point.
Technically, the instrument has approached the important 0.55 zone and is likely to trade in the 0.5-0.55 range for some time. Where it is necessary to watch which way the breakout will be. Given the accumulated shorts in this instrument, if the 0.55 zone is caught, we may see a significant short squeeze.
Stay tuned.
