- The CFTC claimed in the KuCoin complaint that ETH is a commodity.
- Although KuCoin recorded huge outflows, the approval of the ETH ETF in May remains uncertain.
The recent KuCoin lawsuit by the CFTC (Commodity Futures Trading Commission) has reignited the debate over KuCoin odds. Ethereum [ETH] ETF Approved by May.
In the CFTC's complaint, the commission reiterated that Ether: Bitcoin [BTC]Litecoin [LTC] That's right, it's a product. press release.
“During the applicable period, KuCoin will not be able to solicit and accept orders, accept assets on margin, or trade futures, swaps, leverage, margin, or retail retail transactions involving digital assets that are commodities, including Bitcoin. Operated the facility. [BTC],ether [ETH]Litecoin [LTC]”
Is it a hidden gem or a battle between the SEC and CFTC?
In response to this development, Jake Cherbinski, Chief Legal Officer of Valiant Funds, said: claimed He said the lawsuit is a “hidden gem.”
“The hidden gem in the CFTC’s KuCoin complaint. Normally, the SEC and CFTC pretend they aren’t in a turf war over cryptocurrencies. Today, the CFTC is openly attacking the SEC’s investigation of ETH.”
The US SEC (Securities and Exchange Commission) previously referred to ETH as a commodity
However, it remains unclear even after Ethereum changed from proof-of-work (PoW) consensus to proof-of-stake (PoS) consensus.
However, Nate Geraci of ETF Store says, warned There is a clear SEC vs. CFTC conflict regarding ETH, and we asked for clarity from users and investors.
“Regardless of what you think about Ether, it is unfortunate that we cannot get governments and regulators to provide clarity on Ether and cryptocurrencies in general. Why not? Instead, we see veiled shots between agencies and inconsistencies everywhere.”
As Geraci said, this complaint and subsequent lack of clarity led KuCoin users and investors to move large amounts of money and assets off the exchange.
tentative data It was shown that KuCoin suffered an outflow of approximately $500 million after the charges were filed.
“In the past few hours, approximately 500 million USD assets have been withdrawn from KuCoin on Ethereum, including 274 million USDT, 15,500 ETH, 50 million ONDO, 12 million FET, 95.38 million GHX, etc. KuCoin Hot Wallet still holds above $3.6. There are billions worth of assets on Ethereum.”
Despite this, acceptance odds for the Spot ETH ETF have reached a pessimistic 25%, with Bloomberg ETF analysts citing a lack of engagement during BTC ETF applications.
But Grayscale's legal executives remained confident of approval. Says that,
“I don’t think the lack of regulatory involvement is indicative of any consequences.”
