New York Judge Katherine Failla recently ruled that Ethereum (ETH) is a commodity, rejecting a class action lawsuit against the leading decentralized exchange Uniswap. Judge Failla is also in charge of the SEC’s ongoing case against Coinbase. In her ruling, she stated that the smart contracts involved in the exchange of ETH and Bitcoin were able to be carried out lawfully.
The SEC has yet to make a definitive statement on the classification of ETH, though Gary Gensler, the current chairman of the SEC, believes that “everything other than Bitcoin” is a security. The SEC uses the Howey Test to determine whether a transaction qualifies as an investment contract, and therefore a security. This test states that an investment contract exists if there is an “investment of money in a common enterprise with a reasonable expectation of profits to be derived from the efforts of others.”
Last month, the SEC ruled that Solana, Polygon, Cardano, and nine other assets are securities. Coinbase raised questions about the SEC’s interpretation of securities laws, implying that the agency might be overstepping its legal authority. Ethereum’s price dropped by 2.1% in the past 24 hours, according to CoinGecko.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | North America |
| Countries | |
| Sentiment | neutral |
| Relevance Score | 8 |
| People | Coinbase., Howey Test, Katherine Failla, SEC, Gary Gensler |
| Companies | Howey Test, SEC, Solana, Uniswap, Polygon, Cardano, Coinbase |
| Currencies | Polygon, Solana, Cardano, Ethereum, Bitcoin |
| Securities | None |
