After many years of back and forth, Gary Gensler (SEC Commissioner) has finally agreed that BOTH Bitcoin and Ethereum should fall under the CFTC for all regulatory matters.
This comes months after CFTC Chairman, Rostin Behnam submitted an official bill that if passed by congress would officially slide Bitcoin and Ethereum away from the SEC and under the CFTC's authority.
Meaning, that both Bitcoin and Ethereum would be classified as a commodity and NOT a security.
This ALSO means that there's a good chance almost every other crypto project will likely get the security classification. Not official, I'm just connecting the dots as to why Gary would have agreed to this.
If you're wondering why the overnight pump for the crypto market, this is the reason.
Funny enough, this is good for Ethereum and Bitcoin, but bad for every other project. Which further backs my "crypto bots are trading altcoins based on the movement of Bitcoin" because most altcoins should be going down a bit with this news.
This move will provide regulatory clarity, which the space needs badly. However, once these projects are officially labeled a security, many exchanges like Coinbase, Kraken etc. will have to decide, do we register with the SEC to sell Shiba and friends? Or, do we want to stay away and focus on the two big dogs in town, Bitcoin and Ethereum.
As exchanges drop off, you'll find many of these projects struggle with funding and liquidity issues.
If you're interested, click here to read more about the Digital Commodity Exchange Act that is currently in front of Congress for review.