CFTC Commissioner clarifies Ethereum is non-security commodity, ending SEC ambiguity

• Attorney Jeremy Hogan has recently highlighted the ambiguity of the SEC’s stance on Ethereum as a security.
• Although Gary Gensler has stated that US securities laws are very clear, the status of ETH remains uncertain.
• CFTC Commissioner cleared up that Ethereum falls under the jurisdiction of his agency and that it is not a security.  

In light of the recent developments in the United States Securities & Exchange Commission (SEC) v. Ripple Labs court case, attorney Jeremy Hogan brought attention to the legal status of Ethereum. Hogan asked SEC Chair Gary Gensler whether Ethereum was a security, while the Commodities & Futures Trading Commission (CFTC) Commissioner Brian Quintenz also gave a statement regarding ETH.

Ether is under CFTC jurisdiction

Attorney Hogan asked the head of the SEC whether Ether, the underlying asset of the Ethereum blockchain, was a security pertaining to the Ripple case. The lawyer stated that Gensler previously said that the US securities laws are very clear, but there seems to be cloudiness around the status of ETH.

Gensler has had extensive experience on Wall Street, with government regulation and with teaching about cryptocurrencies at MIT. The crypto community believed that his appointment as the SEC Chair would be good news for the industry.

The digital asset industry has struggled around regulatory frameworks, and the former head of the SEC, Jay Clayton, had been known to justify his actions against cryptocurrency proposals. 

Hogan added that Gensler is highly informed about Ethereum, given his background. Therefore, the attorney asked for a clear answer regarding the status of Ether. The SEC Chair previously said that XRP and Ether could be classified as non-compliant securities.

CFTC Commissioner Quintenz said that the SEC and his agency both share responsibility for the regulation of futures contracts on securities. 

The Commissioner clarified that there is currently a futures contract on Ether. Therefore, it is only “under the CFTC’s purview, which makes ETH a non-security commodity.”

Ethereum price stabilizes ahead of big move

Ethereum price continues to tread within an ascending parallel channel pattern, forming higher highs and higher lows. The governing chart pattern suggests that although ETH has not broken out of the trend yet, it could head toward $3,800.

The prevailing chart pattern indicates that a swing above the upper boundary of the parallel channel could put a 16% surge on the radar. However, before this bullish target can materialize, Ethereum price has a few hurdles to tackle.

The first obstacle for ETH is at the 61.8% Fibonacci extension level at $3,352, then the topside trend line of the chart pattern at $3,401.

ETH/USDT 4-hour chart

Should selling pressure increase leading to a reversal of fortune, Ethereum price would discover meaningful support at the 20 four-hour Simple Moving Average (SMA) at $3,227, coinciding with the middle boundary of the chart pattern.

Further lines of defense will emerge at the 50 four-hour SMA at $3,164, then the lower trend line of the parallel channel at $3,062.