The long arm of the SEC became slightly shorter today, as Bitcoin was officially ruled a commodity. The past several months have been somewhat scary for the crypto community, with fears of how the market will react to the SEC and their decisions on cryptocurrencies. If all cryptocurrencies were to be ruled as securities, it would likely cause significant chaos, as exchanges would require certifications and the like.
It makes sense to start at the top, with a firm decision on what the largest crypto coin would be classified as a security. As of today, Bitcoin is officially a commodity, now under the care of the US Commodity Futures Trading Commission (CFTC).
This ruling puts Bitcoin in the same category as gold, which makes sense with the commonly used nickname for BTC being “Digital Gold.”
This fact could also be great news for a future Bitcoin ETF. As a commodity, Bitcoin may be seen in a similar light to Gold ETFs, possibly changing the criteria to be evaluated for a much anticipated Bitcoin ETF.
The CFTC also appears to see the potential for cryptocurrencies, showing signs of positivity, even stating on CFTC.Gov: “New technologies are wide-ranging in scope, from cloud computing and algorithmic trading to distributed ledgers to artificial intelligence and machine learning to network cartography, and many others. These technologies have the potential for significant or even transformational impact on CFTC-regulated markets and the agency itself. One of the most recent marketplace developments driving a lot of interest is the rise in prominence of virtual currencies, specifically bitcoin.”
It will be exciting to see how the above ruling plays out in the days to come.