According to the former commissioner of the United States Commodities Futures Trading Commission (CFTC), Ether, the native token of Ethereum, may be both a commodity and a security.
Dan Berkovitz, a former chief counsel at the Securities and Exchange Commission (SEC), claimed it is technically conceivable for ETH to fall under the jurisdiction of both regulatory agencies in a May 23 episode of Laura Shin’s Unchained podcast.
The ongoing confusion over Ether’s legal status stems in large part from conflicting statements from the CFTC and the SEC. Over the course of the last six months, the CFTC has repeatedly called Ether, along with a number of other cryptocurrencies, a commodity.
Meanwhile, the Gary Gensler-led SEC hasn’t yet assigned Ether a specific legal classification. At an oversight hearing in April, Gensler stated that everything but Bitcoin should be considered a security but has since declined to provide any details.