CFTC chairman Heath Tarbert, in an interview with Cheddar, said that it is not clear yet whether XRP is a security or a commodity. He noted that CFTC has been working quite closely with the Securities Exchange Commission (SEC) over the last few years.
CFTC is working to provide legitimacy to cryptocurrencies.
The chairman of the Commodity Futures Trading Commission, Heath Tarbert, when asked about the regulation around the cryptocurrencies he replied that CFTC is working to regulate cryptocurrencies in such a way so that they would become more legitimate. He added, “part of the issue is that the jurisdiction we share with the SEC if it’s a security, it falls under their jurisdiction. If it’s a commodity, it falls under ours.”
— Cheddar🧀 (@cheddar) January 13, 2020
Bitcoin and Ether are commodities.
Heath Tarbert said that bitcoin and Ether are commodities and not securities. Earlier, he had said that they have been clear on bitcoin that it is a commodity, but they only recognized Ether as a commodity back in October 2019. The debate around XRP has been going on for a while. There is also a class-action lawsuit that Ripple is facing in which plaintiffs have claimed that XRP is a security, and Ripple sold them without registering with SEC.