CFTC chairman Tarbert seemed positive on the launch of Ethereum futures. Earlier, he had confirmed that CFTC views Ethereum and Bitcoin as commodities and not securities. Speaking at DC Fintech Week, he noted that the transition of the taxonomy of an asset is also possible. Something termed as a commodity today could be a security tomorrow, he added.
CFTC Chairman Heath Tarbert just confirmed at DC Fintech Week that in their view, something can begin life as a security and migrate to a commodity – but it can also go the other way!
— nic carter (@nic__carter) October 21, 2019
Several experts from the crypto community criticized the idea of such transformation. Gabor Gurbacs from VanEck tweeted that it sets a terrible precedent in his view with long term business uncertainty implications and legal ramifications that will likely be abused in predominantly common-law governed jurisdictions.
Sets a terrible precedent in my view with long term business uncertainty implications and legal ramifications that will likely be abused in predominantly common-law-governed jurisdictions. An orange doesn’t just become a potato!
— Gabor Gurbacs (@gaborgurbacs) October 21, 2019
CFTC chairman had earlier stated that there is an ambiguity in the crypto market regarding some coins, but he believes that similar digital assets should be treated similarly. Apart from bitcoin and Ethereum, CFTC is also preparing to view at other assets. Bitcoin Cash, Litecoin, and XRP are already traded as commodities in parts of Europe.