In a recent podcast, Dan Berkovitz claimed that the nature of the Ethereum (ETH) Crypto token may be Security & Commodity at the same time.
In the present time, the majority of countries are exploring the best approach to regulate the crypto sector & provide better clarity to the crypto businesses but this is not the same in the US. Over the past 6 months, US regulators are targeting crypto companies without providing the proper clarity on the ruling.
On 23 May 2023, During Laura Shin’s Unchained podcast, Dan Berkovitz, the former general counsel at the Securities and Exchange Commission (SEC), said that there are huge chances that the Ethereum (ETH) coin may fall under the regulatory authority of the United States Securities and Exchange Commission (SEC) as well as under the Commodity Futures Trading Commission (CFTC).
The former CFTC official explained that it is a reality that the legal definition of Security & Commodity overlaps, so here it will not be strange to see this crypto asset under the regulatory control of both the agency, no matter how much conflict will arise.
Further Berkovitz confirmed that laws are clear enough & says that an asset can be a Security as well as Commodity simultaneously.
“The law is clear. Something can be both a commodity and a security,” a former CFTC commissioner said.
Later the whole discussion shifted toward the trade situation of the crypto tokens, as a key factor to identify whether the token was sold under securities law or commodity laws.
Earlier this at several moments, the SEC chairman Gary Gensler said that all the crypto assets are securities except Bitcoin. While several times, the CFTC agency said that Ethereum is also a commodity.
