A US District Court Judge Refers to Ether as a Commodity
A US District Court Judge, Katherine Polk Failla, has dismissed a class-action lawsuit against the Uniswap decentralized exchange, referring to Ether as a commodity. In the ruling, Judge Failla stated that Bitcoin and Ether are considered “crypto commodities” rather than securities. This classification was made in response to a case filed by Uniswap users who claimed to have lost money to scam tokens on the platform.
Key Points:
- US District Court Judge Katherine Polk Failla dismisses class-action lawsuit against Uniswap.
- Judge Failla categorizes Ether as a commodity, not a security.
- Previous classification by US Commodity Futures Trading Commission (CFTC) also considered Ether a commodity.
- SEC has not definitively classified Ether as a commodity.
- Judge Failla is overseeing the SEC lawsuit against Coinbase for offering unregistered securities.
This ruling is not an official designation of Ether as a commodity, but it aligns with other recent favorable rulings in the crypto market that aim to provide more regulatory clarity. In a separate case, a judge ruled in favor of Ripple Labs, stating that its token, XRP, is not a security. Grayscale Investments also secured a win against the SEC as it seeks to convert its Grayscale Bitcoin Trust into a listed spot Bitcoin ETF.
Hot Take:
US District Court rulings that categorize Ether as a commodity and determine the status of various crypto assets are shaping the regulatory landscape for the industry. While these rulings do not guarantee future outcomes, they indicate a trend towards greater clarity and recognition of cryptocurrencies as distinct assets. The SEC’s ongoing crackdown on unregistered securities and its upcoming decisions on Bitcoin ETF applications will continue to impact the market.
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