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A US District Court judge has classified ether as a commodity and dismissed a class action lawsuit against decentralized exchange Uniswap.
In her ruling, Judge Kathryn Polk Failo noted that bitcoin and ether are "crypto-commodities" and not securities. A judge rules on the case of a Uniswap user who claims to have lost money on DEXs through fake tokens.
US District Court judge finds ether a commodity
This is not the first time that ETH has been classified as a commodity. The US Commodity Futures Trading Commission (CFTC) earlier this year argued that ether and other cryptocurrencies are commodities in a lawsuit against Binance. The lawsuit alleges that Binance violated the Commodity Exchange Law.
However, the US Securities and Exchange Commission (SEC) has not classified ether as a commodity. Last month, reports indicated that the SEC had asked Coinbase to remove all cryptocurrencies except bitcoin from its trading platforms before suing the exchange.
The SEC has classified 13 cryptocurrencies as securities, including major cryptocurrencies like Cardano and Solana. Judge File is also overseeing an SEC lawsuit against Coinbase for offering unregistered securities.
US Courts Make Positive Decisions Regarding Cryptocurrencies
Judge Faila's classification of ether as a commodity does not officially confer such status on the crypto-asset. But then other judges make decisions that benefit the cryptocurrency market and push the industry toward greater regulatory clarity.
In July, a judge awarded Ripple Labs a partial victory over the SEC when the company said its XRP token was not warranted for public sale. The SEC sued Ripple and its executives for engaging in unregistered securities offerings. The SEC plans to appeal the recent decision.
Grayscale Investments scored a major victory against the SEC this week when the crypto asset manager converted the over-the-counter Grayscale Bitcoin Trust (GBTC) into an exchange-traded Bitcoin ETF. The SEC has not approved any Bitcoin ETFs.
🚨 JUST logged in 🚨
DC Circuit wins @Grayscale in our lawsuit against the SEC's decision to appeal the conversion of $GBTC to ETF!
Thank you to everyone who has joined us on this journey, especially our investors. We appreciate your support and...
— Sonnenshein (@Sonnenshein) August 29, 2023
US Circuit Court Judge Naomi Rao granted the company's request for judicial review. The judge also struck down the SEC's decision to deny GBTC's regulatory filing, saying the earlier decision to block it was "arbitrary and arbitrary."
The judge's decision does not guarantee that the application for the grayscale spot bitcoin ETF will ultimately be granted, and it comes as the SEC continues its crackdown on the crypto industry. The regulator has filed lawsuits against two of the largest cryptocurrency exchanges, Binance and Coinbase, accusing them of being trading platforms that offer unregistered securities.
The market is also considering whether the SEC will approve bitcoin ETF spot filings. With the next deadline for a regulatory decision on the proposal fast approaching, analysts now believe Grayscale's recent legal victory has increased the chances of approval.
ONLY ON: CNBC market analysts expect all #Bitcoin spot ETFs to be approved this fall.
— Watcher.Guru (@WatcherGuru) August 30, 2023
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