As expected, FTX’s controlled explosion has heightened calls for regulation. Bad times for Ethereum which falls into the greenhouses of the SEC.
The Princeton conference will be a landmark
CFTC Chairman Rostin Behnam spoke on Wednesday, November 30 at a conference hosted by Princeton University.
Bankman-Fried was originally slated to be the star guest, but his slot was eventually filled with a panel titled “The Demise of FTX and Other Crypto Entities: Lessons Learned”.
Never mind, SBF went to be served the soup at a parallel conference organized by the New York Times. The scammer even received applause. Unbelievable :
But it was the Princeton event that turned out to be the most interesting. In particular was present Joseph Lubin, the co-founder of Ethereum and CEO of Consensys, a pillar of the Enterprise Ethereum Alliance.
J. Lubin was probably disillusioned since the president of the CFTC went back on his previous statements by suggesting that Ethereum is a “security”.
To put things in context, remember that the regulatory vacuum around crypto is partly linked to the lack of clear definitions.
The central debate is whether certain Altcoins should be ranked “commodities” Where “securities”. Knowing that the CFTC oversees commodities and that the SEC takes care of the securities.
Ethereum is a security
Fortune Magazine reports that the chairman of the CFTC has decided. He now believes that “the only cryptocurrency that should be considered a commodity is bitcoin”. It’s a flip-flop on his October statements that suggested ether was also one.
In other words, only bitcoin is a commodity, like gold. The Ethereum joins for its part the ocean of pastiches which will have to register with the SEC to be present on the American exchanges.
In short, the fall of FTX ended the debate. FTX and SBF had indeed been lobbying intensely alongside the Democrats for several months. The goal is to prevent Ethereum from falling under the control of the SEC.
This was the subject of the Democratic bill “Digital Commodities Consumer Protection Act “. This competing bill to that of the maximalist Republican Cynthia Lummis ultimately failed to achieve consensus.
The fact that the president of the CFTC has reversed his jacket is probably not unrelated to the fact that the United States House of Representatives has passed under the Republican fold…
Things are finally back to normal. There is Bitcoin and shitcoins…
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