The United States Commodity Futures Trading Commission (CFTC) has classified Ether (ETH, the cryptocurrency of the Ethereum network) and Litecoin (LTC). Goods, This was written in a lawsuit filed yesterday by the regulatory body against KuCoin exchange.
In the complaint, the CFTC says that KuCoin allows trading in commodities such as Bitcoin (BTC), Ether, and Litecoin, and therefore, these operations are permitted to the cryptocurrency exchange under its regulatory framework, according to the lawsuit. It has been told. a statement Released yesterday.
The document reveals itself once again The conflict that exists between the CFTC and the Securities and Exchange Commission (SEC). This, especially given the fact that the agency’s chairman, Gary Gensler, has pushed for it to become the leading body for managing the United States’ approach to the cryptocurrency industry.
To regulate this sector, the SEC uses a law that is already 90 years old. And based on this, consider that some cryptocurrencies are security or securities. While the CFTC considers most cryptocurrencies to be commodities, a qualifier that places them in the commodity category or Goods,
These contradictions have come Complicating the Outlook for Cryptocurrency Companies Which operates in that country. Especially given the fact that regulators have issued wholesale demands on the cryptoasset industry.
Regulators’ contradictions in KuCoin case
As stated at the beginning of this note, the CFTC filed a lawsuit against the KuCoin cryptocurrency exchange accusing it of operating a cryptocurrency trading platform. Goods Without registering before that Commission.
Not long ago, the Justice Department KuCoin and its two founders formally charged Violation of anti-money laundering (AML) laws, as reported by CriptoNoticias.
Last year, New York Attorney General Letitia James sued KuCoin for offering, selling and purchasing securities and commodities without the required registration. in that momentThe prosecutor classified ETH as a security.
According to James, each of these cryptocurrencies falls under the definition of commodities, which is included in the New York State Securities Law (also known as Martin Law). This includes foreign currencies and any other goods, articles or materials.
In turn, he said that cryptocurrencies like ETH are securities because “they represent the investment of money in common enterprises with profits derived primarily from the efforts of others.”
All of the above suggests that the fact that there are no specific laws regulating the cryptocurrency industry in the United States will continue to complicate the outlook for actors in the sector operating in that country.
