Topic: Is ETH a commodity now? (Read 509 times)

Why do you think so, bro? 

It's another question and we shall see it answered in the future. You are right.

I think there are still other forces like Congress that can change this decision. As we know, Congress has the ability to pass a rule or even transfer regulatory authority from the SEC to another body. However, whether Congress wants to handle it or not.

I am not sure, while you can make a case about yours, just because it has an interest doesn't mean that it is not an asset anymore, there are assets that pay dividends, stocks, and that means ETH could still be considered as an asset right now. I am not saying you are wrong, I am just saying you are as right about it as the person who says it's an asset, you are both right.

I feel like commodity is something that we can attribute to anything we want, I have seen people talk about their BIKE as commodity for Christ sake, whatever you consider valuable is a commodity. My friend sold his watches to make capital, you think watch is normally considered as asset or commodity, normally it isn't but he did it, was he wrong? Were people who said it is not one was wrong? Not really, commodity is whatever you use as a commodity, that's it.

Ethereum WAS a commodity when it was a PoW coin. But not anymore. Especially after switching to PoS. You basically become a shareholder of the network by holding ETH on your wallet (otherwise known as staking). In return, you receive a compensation (interest) depending on the number of coins you've deposited and how long it's been on your wallet. The longer the time, the higher the rewards will be. Similar to stocks that pay dividends.

The SEC only changed its opinion of ETH after pressure from giants like BlackRock and VanEck. After all, money talks. I hope Ethereum takes decentralization seriously before it's too late. You can see why no other coin can beat Bitcoin in terms of decentralization and censorship-resistance. It's what we need to obtain true financial freedom even from oppressive governments. Who knows what will happen in the future?

ETH is already a commodity, as per assertion by CTFC.



Most likely to happen. The SEC ordered the Ethereum ETF spot issuer to remove staking ethereum from their application. It's very likely that the SEC will ban ethereum staking. Also, SEC sued various crypto companies that offered ethereum staking.  

To me, the main concern for the SEC is ethereum staking. It is key for their approval of the ethereum ETF SPOT application. SEC still had mixed reaction before ethereum ETF issuer updated their application. But then SEC became supportive after they removed ethereum staking.

It was a commodity from the very start, but the regulator doesn't want to accept that as they don't want to accept bitcoin as a commodity either. Banking sector and people who run them felt threatened by the very existence of bitcoin and ETH. They are the ones that pushed the SEC not to accept bitcoin or ETH but as this industry got bigger and stronger, they had to accept it. Everything is becoming tokenized thanks to the smart contract technology developed by ETH that makes this possible. Bitcoin and ETH are the two greatest innovations of this century.

Just a moment ago would have answered that obviously no, because why would they do that? It's literally SEC's job to define them. That's why they hired experts in there.
Imagine some ignorant randos in congress who wouldn't have a clue what are even the ramifications of such change.

But with latest court’s Chevron ruling i am guessing they don't need to hear scientists, economists and other specialists for changing regulations. So i guess they can do freaking anything now wihtout consulting experts about the ramifications of it.

Even still, i don't know whom it would benefit. Even if that would be changed to security, reason would be because of protection of investors. But that Chevron ruling, which is wet dream of republicans, is signaling that they want to diminish customer and worker protection, and lower standards and responsibility for safety of the food, medical products, enviroment and especially recuirements for financial sector, so i can't see any reason why they suddenly would change it.

If they agree to the ETH ETF on the documents they have now, it won't be a commodity, but staking will be prohibited!

Is eth commodity now? Here in Indonesia all Crypto is considered as commodity by the Bappebti or the regulator who regulates crypto space

So basically here you can trade crypto freely and legal by using local exchange that have license and regulate same as commodity

No CEO? You might want to double-check your phrase. Especially when Vitalik is at the center stage of the project. Everyone follows him as he were some sort of celebrity or god. Just like foolish investors following Elon Musk to buy/sell Dogecoin. Some say many developers are working on ETH, but without Vitalik, I fail to see how the project would be a success. He would've stayed anonymous like Satoshi, and no one would even care if he was alive or dead. His public image can negatively-affect ETH in the long term.

I still consider ETH a security because of the PoS mechanics. You're entrusting your funds to big exchanges and corporations. It's a lot different from mining where you can easily set up a rig or farm at home (even if there are companies running huge mining farms). Both miners and node operators determine network consensus. Not like Ethereum where stakers (validators) are also node operators. The SEC just backed down because of fear from giants like BlackRock, Fidelity, and VanEck. Not because it was wrong. Money talks, right? Why should we be worried about this? As long as we have a truly-decentralized coin like Bitcoin, nothing else matters.

I would say it is a bit centralized, but also it's like gold or silver basically. Doesn't mean anyone owns it, doesn't mean it's like stocks, there isn't a CEO, it is basically price of grain or whatever, and you can bet on those things. But at the same time, crypto and commodity are different things, mainly because one of them could be used as a currency. Meaning that, while I agree that ETH could be called commodity for one way of using it, but it could also be called currency for another part.

So, I do not know what people should call it, SEC could call it a commodity if they want to, it is their own right and they can do whatever they want to, but I personally wouldn't call it a commodity right now, because it can still be used.

ETH has been around the horizon of cryptocurrencies and has intensively maintained reputable margins leading AltCoins as a digital assets that proceeds on its utilizing transactions in the decentralized blockchains.
So, I don't know if any course it has become a commodity. And if I may ask, is it a commodity in a centralized or decentralized modification?
I was Interested to read better on the link provided but seems an error and link not supported.

from the large number of holders because of its users in blockchain and the development of decentralized financial applications by investing in it, remaining convinced that ethereum is a commodity, this is a decision taken and is confident that future steps will get good results with the base for many advances with increasingly better technology and their decisions It's not final yet and we can see developments in the future.

Ethereum is a security, one guy controls what happens with it. A big % of the supply was pre-mined. Being a security doesn’t mean Ethereum is a bad investment, it’s done so well, many people have become very wealthy by investing in it plus the chain provides huge value to all ERC-20 tokens. It is definitely not a commodity.

I agree with you and with everyone else here. Even though the SEC makes Ethereum a commodity, Congress has higher power than the SEC. This is a decision that is not final and I am sure we will get better results in the future.

I think for the SEC to approve ETH as a commodity, it would have to pass through Congress first. So far, I haven't seen anyone but the SEC making decisions on this matter. I think their decision is not final.

Bitcoin has an advantage for having a pseudonymous creator for sure, and i regocnize that my thoughts are controversial on the subject.

And i am not sure what you mean by "something", but if you are implying that if Vitalik died, i would assume that it would probably just raise value and trust towards eth, as Vitalik would have been the biggest key element that people are referring to, when they talk about eth being centralized.

But if Vitalik changed his mind radically on something code related, i am sure that many people would follow and eth would fork. So in that way i see your point, but that would only fork eth, just like bitcoin has been forked in the past. And like i already pointed out, vitalik isn't in charge of the development anymore. There are LOTS of other insanely talented people working on it.

And from what i gather, yes, i think you are correct and it's CFTC instead of SEC now. Let's hope for the best on their values and decentralization. After all, it's for people, and needs people to be valuable.

Well, while the SEC has classified ETH as a commodity, other forces, such as Congress, do have the power to influence or change this decision.

Congress could pass new laws or regulations that redefine the classification of cryptocurrencies, including Ethereum. Additionally, other regulatory bodies or legal challenges could also impact how ETH is classified in the future. So, while the SEC's stance is influential, it's not the final word on the matter, you what what I mean.

I guess fear from crypto industry giants made the SEC step back from labeling ETH a security. But we can't deny ETH is less-decentralized than Bitcoin itself. Especially with how Vitalik still has influence over the project (even though many developers are working on it). The community considers Vitalik as a leader. Could you imagine what would happen with ETH's price if something bad happens to Vitalik? Bitcoin didn't have a problem with Satoshi Nakamoto's departure from the project because nobody knew who he was. People were following the coin itself. Not the one person (or group of persons) behind it.

I agree that huge mining farms centralize the Bitcoin network. Fortunately, miners alone aren't the only ones who're part of network consensus. They're separate from node operators. In the case of ETH, stakers (validators) also constitute themselves as node operators allowing them to take full control of network decisions. At least, that's how I understand it (please correct me if I'm wrong). With ETH now a commodity, the CFTC will now be in-charge of regulating it (not the SEC). Hopefully, ETH sticks to its original values of decentralization for the benefit of all.

SEC has decided it's now commodity, so we don't need to wonder about that, and if they don't see it as a security, no one has reason to. Centralization doesn't make it a security and idea of whole centralization around it is debatable anyway imho, especially when we compare it to other cryptos, like bitcoin. And i don't see PoS centralizing it any more then huge mining farms do to PoW coins. In same way, Bitcoin is centralized around people with biggest rigs and most money to run them when price of electricity is high and price of BTC low.

And vitalik isn't the main guy anymore, there are numerous active developers, and if we compare the numbers of active developers on both of them, eth doesn't seem to be that centralized around the main team.

     To my knowledge, the conversation is still going on. Moreover, concur with my suggestion or be aware of the CFTC's (commodity futures trading commission) statement that, in response to objections from cryptocurrency exchanges, Ethereum is now openly recognized as a commodity. Their goal is to control ETH in this way.

     The distinction between a commodity and a security should also be considered. Given that commodities are fungible assets, whereas securities are investments in projects, Ethereum may be subject to CFTC restrictions pertaining to derivatives trading if it is categorized as such. More stringent SEC restrictions would apply to it as a security.

We shouldn't change our perception of ETH from being a security to a commodity. Especially when it's utterly-centralized. The PoS mechanism "kills" it. ETH is now a "corporate coin" where big companies with a lot of money can influence the future direction of the project. You're basically entrusting your ETH to centralized entities. Not to mention, the huge influence Vitalik Buterin has over Ethereum.

If (God forbid) something bad happens to him, Ethereum will be done for good (or at least, it will lose value big time). Talk about being a security. The only real commodity is Bitcoin due to the way it was designed. I have a feeling the SEC will prosecute the Ethereum Foundation due to the sale of "unregistered securities" (the ICO before ETH's launch). Bitcoin never had an ICO or publicly-known founder, so it's safe from harm's way. Lets move on, shall we?

It's very possible to rectify their description of ETH and can overthrow the decision of SEC. Everything is in paper so if there will be changes, they can do it in paper as well. But right now, I don't think that we'd see that anytime soon because it's just getting started. But if they're going to change their description of ETH as a security instead of a commodity, there will be for sure a lot of impact to its price.

It's still a security. Any coin with a PoS mechanism will be classified as such by the US government. ETH is becoming more centralized each day, as big players (mainly CEXs) hold a large stake on the network. The ETFs approval will only make matters worse. Would you imagine an scenario where institutional investment companies become validators of the ETH blockchain with customers' stake? It'd be disastrous.

This is NOT what Satoshi wanted in the first place. People don't care because they're only focused on making money. As long as ETFs "pump" market prices, nothing else matters. We're going to have to see if the SEC will change its view on ETH and starts calling it a "commodity". Crypto regulations in the US are still a "mess". We can't predict the future, so lets hope for the best. 

Ethereum have being making a lot of news this few months and weeks back, I guess with the Ethereum etf approval nearing we have to pay close attention to Ethereum in terms of market volatility and bullish movement since if the ETF get approved, this will give Ethereum the same assets value that make it a digital commodities since.


Let us us see what comes along with all of that and how it helps the overall general Ethereum network as with sec approvals and technical development that will support the network when it wants to react to the current market demands.

Well, let me say that I do not have time for all the SEC's nonsense, it is trying to create confusion in the cryptocurrency industry and people are falling fast for it. For me, this is a plan to further weaken the crypto industry and for them to take more control, but people are not sensitive and futuristic about it. If they continue like this by dividing the crypto market unchallenged, it will get to a point later in the future that they might say they want this class of coin/token and will clamp down on the others.

First, they are successful in stating that Bitcoin is not a security, but by virtual of all definitions, meanings and interpretations, it shows that Bitcoin is indeed a security. Now, it is the time of Ethereum just because of the ETF filing and they've started claiming that it is a commodity ( that's if what you claim is true for I did not read it) despite Ethereum not having the characteristics of what I know as "Commodities" that are being traded in the financial market. These are mere ways to creep further into the crypto world so as to regulate it further.

Because with time, they will surely fight most of these cryptocurrencies and cause some never to exist anymore and also block many others from ever being created. This is a mere foundation for that, though it could take decades, but truly, it will make it easier for them to strike. However, I do not have anything against regulation and never will I, since it is helping humanity than causing pain, but for the division they are solely causing for the crypto world unchallenged.

Should the US be the one to always tell the whole what a thing is and what it is not? That is my issue here.

What opposite reaction? When they say that ETH is an asset and not a commodity? Not sure if they mean it, I mean maybe they only use that term because each of us has also been using it and we interchanged it sometimes with currency and even a commodity, or whatever term that we can think of.

This shows how versatile cryptos are. With that being said, I think it is not a big deal if whatever term they will be using to ETH or to any other cryptos and I'm sure that both or all of them are still going to be valid. The real one that ETH supporters are going to dislike is if there is someone who will be against the approval of its ETF but luckily there's none .

He indeed passed BTC and ETH to CFTC, but SEC will still continue regulating most of the crypto industry like before.
Why? Because we are talking about derived products here. ETFs are securities without a question. US exchanges are under SEC supervision already. Purely onchain volumes are dwarfing.

What would be the benefit of overthrowing the decision though? Because in my knowledge about corrupt politics, as long as there's no benefit to be had when it comes to politicians, they're not taking actions really quickly, unless someone "bribes" three or more of the seats in the congress to do something about some legislations, overthrowing might not be the best decision at all. I wouldn't consider ETH as a commodity right now, I feel like it's more of a currency rather than something that you can consume because that's where I base my consideration of whether you can consume it or it's a type of service.

Why would the Congress do it when half of them are in the pockets of financial institution. It is a capitalist economy where lobbying is common. If the Congress tries to change the ruling of the SEC they will need the votes which they might not be able to get. Right now it is just been approved and their are a few changes that need to be done by those who got the approval before trading starts.

I truly believe that Ethereum is doing great for blockchain technology and will continue to innovate. Many say that ETH is a commodity but ETH can never be a commodity. Crypto has no ownership. Crypto runs on its own rules. No government regulations are issued here. Even the SEC's own guidance states that a digital asset cannot move away from being a security because it becomes sufficiently decentralized over time, though critical details are lacking.

Ethereum is only second to bitcoin but being second to bitcoin encompasses a lot of things.

With hundreds of coins and tokens being released every day, ethereum has made itself the leader of altcoins. It has the most investors and more people are surely going to be looking at its direction coming 2025. With the addition of etf approval, ethereum may solidify itself as a leader of the altcoin sector.

Etf approved kind of means unstoppable and untouchable now. We just have to wait and see how high it can go.

Don't worry buddy, congress gave an opposite reaction for the ETH ETF approval. They are now thinking of finishing the crypto regulatory framework as soon as possible because the acceptance of crypto ETF means if public have been also accepting crypto to be a new commodity in our life.
The positive impact will be coming soon. I think cynthia lummis's tweet has been making everything clear. They are not working to the crypto regulations as soon as possible.


Just see the tweet has been published by cynthia.

Those are a very good summaries on the arguments which could be yield by the authorities within the United States to clasify Ethereum as a security, instead a community, in my opinion. Probably the worst steps which was taken by the Ethereum community was to change their mining model to prooof of stake,.sure, it is more energy friendly and it helped to decrease the price of GPUs worldwide,.but assuming the big genius in informatics Vitalik is,.he could have come.uo.with anything completely different which would have saved zeyehrruk.from ever being labeled as a security instead a community.
By the way, I don't not have a problem with Ethereum had created an Initial coin offering from the beginning, they obviously were aware of their money they needed to push the project forward and they indeed did , not good coins and tokens which deliver on their plans need to have a fair launch, like Bitcoin did back in the earliest days of the market. Ethereum.continues to be reliable and the blue chip coin for those interested in dece realized smart contracts.

At least now the SEC has accepted several proposals being worked on by Ethereum and there are only a few steps left for Ethereum to enjoy the fresh air that will happen soon. It is also certain that Ethereum will trigger an altcoin bullrun in 2025, so we have to wait patiently.

The SEC has been the order of the day and we should not be surprised of the drama we have been experiencing for months now.
I think the sec is confused when it comes to decisions making and the roles need a strong force that would always take a swift decision not trying to take more time when things meed to fix urgently.
The sec has the power to decide but if they don't act well or do things in the normal way that ought to be with too much procrastination.

About CFTC, i see that they are currently have a case against kucoin, about usual illegal platform thing. As one said above, ethereum is better suited as security, but as CFTC is currently chasing kucoin so somehow they decide to stamp it as commodity?

Gensler must have been crying because of this. whether its a commodity or security, it doesn't matter when its ETF is already approved but Gensler will be losing power over ETH and its gonna be in the hands of CFTC.

the scene in politics has changed after Trump did the 180 turn. the people in the government are going to be making crypto the next asset class to go to.

Well, that is the result of their market analysis and it supports their claims to consider that ETH is no a commodity. But I think there is still a need to further their survey and market analysis to enhance the proof that it is worth saying it is now a commodity other than a usual coin used to trade with USDT and any stablecoins.

For now, I couldn't disagree but rather give support to such a claim believing that they ate right. In fact, ETH is known for its potentiality and popularity. We can't deny also that many people are buying and holding this just like what they did to Bitcoin.

I know the SEC are planning for the next step they will do to make this analysis official and be recognized.

Ether in general and professional speaking is not a commodity, it is a security.

Ethereum is centralized to an extent. It was premined as an ICO. Its network is using PoS algorithm in which there are people that staked their coins to earn more coins. Do you see something like these with what are called commodities? No. But are securities like that? Yes.

Ethereum is a security and not a commodity.

It can be traded as commodity. Commodity market is a different market than crypto and has it's own way of operation and taxes.
I don't think it makes all of ETH as commodity in the US, it's just that ETH issued as ETF is traded as commodity. People can still have and trade ETH on the network or on exchange but ETF issuers can also buy and sell ETH ETF which might be backed by an equal number of ETH locked somewhere.
I don't think the congress or the president of US would undo the decision of SEC as SEC themselves are a very conservative in matter of economic decisions and they might have already got pre-approval in doing that.

In theory yes they can definitely do something that can overthrow SEC’s decision but the question here is would they? It’s possible but quite unlikely unless they find something they could use to go against the decision. It would be then a long process and it would go through a lot of levels. It wouldn’t be an instantaneous decision so even if they decide that it wasn’t the right decision it would still take a long time to implement it.

According to the recent SEC filing you all know, ETH is now a commodity - highlight: according to the SEC

Is there still a chance that some other force (e.g. congress) will overthrow SEC's right to make this decision?


(Source: SEC mentions ETF funds as Commodity-Based Trust Shares: https://www.sec.gov/files/tm/lk87adfs99.pdf )