Senator Cynthia Lummis believes that after the merger of Ethereum, ETH should be considered a security, and now BTC is the only cryptocurrency that can be classified as a commodity.
This Cynthia Lummis (Cynthia Lummis) said when discussing measures that could prevent the collapse of the FTX exchange. FTX’s lack of a board of directors, the presence of 135 companies, and the lack of clear financial information all point to fraud, she said. Lummis believes FTX CEO Sam Bankman-Fried should focus on filing for bankruptcy rather than appearing before Congress in a fruitless attempt to restore his reputation.
The senator clarified that her digital asset regulation bill would have prevented such situations and would have made it clear how to classify crypto assets. Lammis believes that after the transition of Ethereum to the Proof-of-Stake (PoS) consensus algorithm, the ether has become insufficiently decentralized, and therefore it can be classified as a security.
According to the Howey test, a security is an asset issued by a centralized entity to raise funding, and the investors who own the asset expect to receive a return that depends on the efforts made by that entity.
“Based on the way things are right now, bitcoin is the only digital asset that can be described as a commodity,” Lummis said.
US Securities and Exchange Commission (SEC) Chairman Gary Gensler is of a similar opinion that ether staking may fall under securities laws. However, Rostin Behnam, chairman of the US Commodity Futures Trading Commission (CFTC), still believes that two cryptocurrencies can be considered commodities: bitcoin and ether.
Source: Bits
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