Bitcoin and Ethereum have gained more than 4% in the past 24 hours as orphaned cryptocurrency tycoon Sam Bankman-Fried added bribery charges to the 12 charges against him.
According to Coingecko, the cryptocurrency's market capitalization increased by 4.3% to $1.22bn (£0.99bn).
Read more: Cryptocurrency: US Condemns Sam Bankman Fried | Binance vs. CFTC | Bitcoin price
Bitcoin (BTC-USD) is up 4% to $28,098, while Ether (ETH-USD) is up 4.4% to $1,808.
Altcoins were also down, with Polygon (MATIC-USD) up 8.4% to $1.14 and XRP (XRP-USD) up 16.5% to $0.55.
CFTC says h ether f I Litecoin as a commodity b bitcoins
The US Commodity Futures Trading Commission (CFTC) said it has classified ethereum and litecoin as commodities alongside bitcoin, which would be recognized as a tradable asset like gold or oil.
The CFTC said in its lawsuit against Binance on Monday that the cryptocurrency exchange “sold digital commodities, including bitcoin (BTC), ether (ETH), and litecoin (LTC), to individuals located in the United States.
During a congressional hearing on Tuesday, CCFTC President Rustin Behnam reiterated his belief that ethereum is a commodity, adding that “because the CFTC is publicly traded, we have a regulatory relationship with the derivatives market and this product in addition to the primary market".
Lawmakers have questioned whether Behnam still plans to create a space for cryptocurrency innovation in the United States, as he has previously said.
“Of course, it should be a priority,” he replied, adding that Europe has established a broad framework for implementation over the next few years and stressed that the US should not be left behind in terms of innovation.
If Ether is formally classified as a commodity, it can have more freedom and flexibility in terms of development and use.
Sam Bankman Fred has been accused of corruption by US prosecutors
US prosecutors on Tuesday filed a modified indictment against Bankman-Fried, accusing her of paying Chinese government officials $40 million in bribes to gain access to frozen trading accounts at Alameda Research.
Alameda Research was a subsidiary of cryptocurrency exchange FTX and was also registered in the Bahamas.
Read more: Live cryptocurrency rates
The revised indictment alleges that Bankman-Fried worked tirelessly to free up frozen accounts associated with Alameda Research, including hiring lawyers to defend the company's interests in China.
“In or around November 2021, defendant Samuel Bankman Fried, aka 'SBF', and others directed the transfer of at least $40 million in cryptocurrencies to benefit, influence and influence one or more Chinese officials and caused.. .that..bans account asking to be removed".
See: Get Your Money On Exchanges, 'Bitboy Cryptocurrency Warning After FTX Scandal | CryptoMail
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