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CFTC considers most crypto to be a commodity not a security. The SEC previously agreed with them on a large number of different cryptos, then changed their mind
by inhumantsar 3y ago
CFTC considers most crypto to be a commodity not a security. The SEC previously agreed with them on a large number of different cryptos, then changed their mind without warning.
What would you call it when regulators can't agree with each other and are prone to sudden major shifts in thinking, if not a lack of regulatory clarity?
- tiahura 3y agoThe holding of the student loan case suggests those agencies have no authority to regulate crypto.
- martin8412 3y agoUpcoming court cases. The lawyers for the exchanges will have to argue for their interpretation of why it's not securities and the SEC will have to argue why the believe it is. The courts will decide based on the facts. If the courts find they're not securities, then CFTC rules will apply. The regulatory agencies aren't there to help you find a way to do business legally, that's a job for your lawyers. If there is not established case law, then you're risking very expensive trials.
- seanhunter 3y agoFirstly the CFTC calls things a commodity to reserve the right to regulate those things. If the SEC also claims jurisdiction that doesn’t actually make the regulation more lax, it means to stay on the right side of the regulation you have to satisfy both regulators. Normal financial firms trading normal financial products deal with this all the time and are very familiar with jurisdictional disputes between their regulators. For example every US bank is more than familiar with keeping the OCC and their state Fed happy. This is BAU in US bank regulation.