The cryptocurrency market continues to face new events. New reports reveal that the US Commodities and Futures Commission (CFTC) has sued the giant cryptocurrency exchange Binance for trading violations! CFTC used the word “commodity” for these 3 coins! Here are the details…
CFTC used the words “commodity” for these 3 coins on Binance!
With new events in the crypto money market, confidence in assets and stock markets is shaking day by day. A lawsuit filed by the CFTC in the Northern District Court of Illinois has faced Binance and its CEO, CZ, with accusations that he operated derivatives trading for coins such as BTC ETH, LTC, USDT and BUSD, despite being recognized as commodities in the US.
However, in its indictment, the CFTC clarified that digital assets such as Bitcoin (BTC), Ethereum (ETH), and Litecoin (LTC) are commodities, highlighting divergent perspectives among US regulators.
As we quoted as Kriptokoin.com, the CFTC has classified cryptocurrencies as commodities since 2014. However, this stance of the CFTC contradicts the stance of the Securities and Exchange Commission (SEC), which does not only accept Bitcoin as a security. This difference in regulatory perspectives has created confusion and uncertainty in the cryptocurrency market. As the cryptocurrency market continues to grow, the lack of clear regulatory guidance is making it difficult for cryptocurrency firms to operate and for investors to exploit the space.
In response to the indictment against Binance, Coinbase CIO Brett Tejpaul commented that a security could also be a commodity, adding that “there are securities that can be commodities and there are commodities that can be securities.” According to experts, this distinction is crucial because commodities are regulated by the CFTC, while securities are subject to the SEC’s regulatory oversight.
“There is so much lack of clarity in the markets!”
The lack of clarity surrounding the regulatory treatment of cryptocurrencies has caused some companies to act cautiously. For example, Coinbase recently withdrew a lending product they had prepared after receiving a warning from the SEC, giving up its launch. The SEC argued that the proposed product is a security and therefore must be registered under the Securities Act of 1933. Coinbase countered this designation, stating that it is a cryptocurrency lending product and therefore should be regulated by the CFTC.
This event highlights the complexity of regulating cryptocurrencies and the need for regulatory bodies to collaborate and develop a coherent framework. The current regulatory landscape is causing confusion and uncertainty that can deter innovation and investment in the cryptocurrency space.
According to experts, market regulators need to work together to create a regulatory framework that encourages innovation while protecting investors and users. If this happens, the necessary clarity and certainty will be provided for the growth and maturation of the cryptocurrency market.
Contact us to be instantly informed about the last minute developments. twitter‘in, Facebookin and InstagramFollow and Telegram And YouTube join our channel!
Risk Disclosure: The articles and articles on Kriptokoin.com do not constitute investment advice. Bitcoin and cryptocurrencies are high-risk assets, and you should do your due diligence and do your own research before investing in these currencies. You can lose some or all of your money by investing in Bitcoin and cryptocurrencies. Remember that your transfers and transactions are at your own risk and any losses that may occur are your responsibility. Cryptokoin.com does not recommend buying or selling any cryptocurrencies or digital assets, nor is Kriptokoin.com an investment advisor. For this reason, Kriptokoin.com and the authors of the articles on the site cannot be held responsible for your investment decisions. Readers should do their own research before taking any action regarding the company, assets or services in this article.
Disclaimer: Advertisements on Kriptokoin.com are carried out through third-party advertising channels. In addition, Kriptokoin.com also includes sponsored articles and press releases on its site. For this reason, advertising links directed from Kriptokoin.com are on the site completely independent of Kriptokoin.com’s approval, and visits and pop-ups directed by advertising links are the responsibility of the user. The advertisements on Kriptokoin.com and the pages directed by the links in the sponsored articles do not bind Kriptokoin.com in any way.
Warning: Citing the news content of Kriptokoin.com and quoting by giving a link is subject to the permission of Kriptokoin.com. No content on the site can be copied, reproduced or published on any platform without permission. Legal action will be taken against those who use the code, design, text, graphics and all other content of Kriptokoin.com in violation of intellectual property law and relevant legislation.