US Judge Agrees with CFTC, Declares Two Altcoins as Commodities!
A US judge has ruled in favor of the CFTC, determining that the cryptocurrencies Olympus (OHM) and KlimaDAO (KLIMA) should be classified as commodities.
Author: Elif Azra Güven
Date: 04.07.2024 – 14:03
Last Updated: 5 seconds ago
Another cryptocurrency case in the US has been resolved, with the court officially recognizing two cryptos as commodities.
Judge Mary Rowland of the US District Court for the Northern District of Illinois agreed with the CFTC’s position and ordered Sam Ikkurty, an Oregonian, and his company Jafia to pay over $120 million in restitution to victims of their “Ponzi”-like fraud scheme.
The CFTC’s lawsuit alleged that Ikkurty and his company were operating without proper registration and had engaged in fraudulent activities. They had raised approximately $44 million from at least 170 investors through their website and YouTube channel, promising an 18% annual return.
Judge Rowland also declared that the cryptocurrencies Olympus (OHM) and KlimaDAO (KLIMA) are commodities.
In its announcement, the CFTC stated:
“The ruling found that Ikkurty and the other defendants violated the Commodity Exchange Act (CEA) and CFTC regulations, including fraud and failure to register. The decision not only confirms that Bitcoin and Ethereum are commodities under the jurisdiction of the CFTC, but also recognizes OHM and KLIMA as commodities. These virtual currencies, like Bitcoin, belong to the same general class and are traded in regulated futures markets.”
Experts analyzing the decision believe that the judge’s classification of OHM and KLIMA as commodities does not fully resolve the ongoing debate in the US regarding the classification of assets in the cryptocurrency sector, specifically whether they should be considered securities or commodities.
In the US, cryptocurrencies that are classified as securities fall under the jurisdiction of the SEC, while those classified as commodities fall under the jurisdiction of the CFTC. However, there is disagreement among regulatory authorities. CFTC Chairman Rostin Behnam believes that most cryptocurrencies are commodities, while SEC Chairman Gary Gensler argues that most cryptocurrencies are securities.
“This decision is not a significant development because the SEC may eventually recognize both OHM and KLIMA as securities,” commented James Brady, a partner at the law firm Katten Muchin Rosenman LLP.
*Please note that this article does not constitute investment advice.
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