Seasoned crypto regulation expert and partner at Hogan & Hogan law firm, attorney Jeremy Hogan, asked U.S. SEC boss Gary Gensler about the legal status of Ethereum (ETH). CFTC's Commissioner Brian Quintenz answered faster.
Not so simple a question
Mr. Hogan took to Twitter to ask Gary Gensler, head of the United States Securities and Exchanges Commission, whether Ether, a core asset of the Ethereum (ETH) blockchain, is a security.
A futures contract on a security is in both the SEC's and @CFTC's jurisdiction. A futures contract on a pure commodity is only in the CFTC's jurisdiction. There is a currently a futures contract on #ETH. It is only under the CFTC's purview which makes ETH a non-security commodity.August 14, 2021
The attorney added that Mr. Gensler is very well informed about what Ethereum (ETH) is. Also, the regulator recently claimed that U.S. legislation on securities is very clear.
That is why Mr. Hogan asked for a clear and unequivocal answer about the status of Ethereum (ETH).
However, CFTC commissioner Brian Quintenz answered earlier that his colleague is from the SEC.
Mr. Quintenz specified that the SEC and his agency, CFTC, share responsibility for regulation in the segment of futures contracts on securities.
A futures contract on a security is in both the SEC's and @CFTC’s jurisdiction. A futures contract on a pure commodity is only in the CFTC's jurisdiction. There is a currently a futures contract on #ETH. It is only under the CFTC's purview which makes ETH a non-security commodity.— Brian Quintenz (@CFTCquintenz) August 14, 2021
At the same time, the futures contract on Ether (ETH) price is solely in the CFTC's purview. "Pure" commodities' derivatives are regulated in such a manner, he added.
That is why Ethereum (ETH) should not be treated as a security, Mr. Quintenz concluded.
As covered by U.Today previously, Mr. Gensler stressed in his interview that Ethereum and XRP "could" be classified as non-compliant securities.