As expected, the explosion of FTX regulation has led to increased calls for regulation. Bad times for Ethereum that 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 the guest star, but her slot was eventually filled with a headline panel “Drop FTX and Other Crypto Entities: Lessons Learned”.
I don’t mind, SBF was given soup at a parallel conference organized by the New York Times. The scammer even got a round of applause. Unbelievable :
But the Princeton event was the most interesting. Among those present were Michael Novogratz and Joseph Lubin.
The first is famous for actively promoting the LUNA ponzi from which he was able to get out before anyone else… The second is the co-founder of Ethereum and CEO of Consensys, a pillar of the Enterprise Ethereum Alliance.
The latter was probably disillusioned since the president of the CFTC went back on his previous statements 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 classified “commodities” Where “securities”.
Knowing that the CFTC oversees commodities and that CSS (Securities and Exchange Commission) takes care of securities.
Ethereum is a security
Fortune magazine reports that the CFTC chairman has made the decision. He believes that now “Bitcoin is the only cryptocurrency that should be considered a commodity”. It’s a flip-flop on his previous October statements that suggested Ether was one too.
In other words, bitcoin is just a commodity, like gold. The Ethereum binds from its oceans the pastiches that must register with the SEC to be present on the American exchanges.
In short, the fall of FTX ended the debate. In fact, FTX and SBF have been lobbying hard with the Democrats for several months. The goal is to ensure that Ethereum does not fall under the control of the SEC.
This was the subject of the Democratic bill “The Digital Commodities Consumer Protection Act “. In the end, this bill in competition with the one of the up-to-date Republican Cynthia Lummis failed to achieve a consensus within the US Congress.
The fact that the SEC president has reversed his jacket and that the United States House of Representatives has gone under the Republican fold has nothing to do with it.
Things are finally back to normal. There’s Bitcoin and shitcoins…
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Journalist reporting on the Bitcoin revolution. My papers deal with bitcoin through geopolitical, economic and libertarian prisms.