The Commodity Futures Trading Federation filed a lawsuit against Binance on March 27, accusing it of violating the Commodity Trading Act and CFTC policies and regulations. The lawsuit alleges that the violation involved buying and selling transactions with Ether. At first glance, this statement touches a particularly noteworthy divergence between the CFTC and the American Securities Trading Federation (Securities And Exchange Commission).

The Commodity Futures Trading Association said in the lawsuit that Binance's trading involved "digital currencies facing American personal BTC (BTC), Ethernet (ETH) and lithium-ion battery (LTC) products." This is not a new point of view for the organization. CFTC claimed in its lawsuit against FTX in December that ETH was a commodity and the current chairman, Rostin Behnam, stressed at a House of Lords hearing on March 8 that ETH and stablecoin were commodities in his view.

Before the etheric alliance, CFTC had no objection to ETH's position. After the etheric conversion confirmed the consensus algorithm, Gamo Gensler, chairman of the Securities and Exchange Commission, issued a comment on the gambling agreement currency, saying: "from a monetary point of view, […] This is another sign that in the Howie test, the project investment public is expected to return on the premise that others are diligent.

Gensler's message led to a slow response. Now, for example, in February, Franz Lubin, co-founder and login password entrepreneur of Etherum, told Cointelegraph that "betting is not a security" and would be a "bad way for the United States". To do that. He added that in his view, US courts allowed his view that if ETH were classified as securities, "not only the cryptographic community, but also different types of politicians and other regulators would strongly protest".

However, CFTC's case against Binance is not so much based on the characteristics of ETH as the characteristics of Binance products, which limits its application to more arguments.

"when necessary, ETH is seen as a 'product' rather than a 'security'," Timothy Calad, head of management at blockchain Technical Intelligence and Information Group, told Cointelegraph. "the civil indictment refers to securities related to swaps." Base has been added:

"the reasonableness of IPOs, including ETH, etc., is still likely to change the concept of applying dynamic passwords. For example, ETH equity can still be understood as an investment agreement or as a security.

Cradle said some transactions, such as portfolio swaps involving ETH, are vulnerable to strict regulation by SEC and CFTC, but this "does not necessarily define ETH itself as a security, as mixed swaps also contain commodities and loan currencies."

Such more complex controls do not necessarily represent communication between the two organizations. Guo Yankun, a partner at the law firm Ice Miller, mentioned such things in a notice for Cointelegraph:

It shows that the dual nature of the performance and use of tokens may cause them to fall under the jurisdiction of several institutions. [.] I would not be surprised if SEC mentioned a similar lawsuit and included all the same tokens except BTC in securities.

Magazines and periodicals: after the collapse of FTX, can you rely on logging in to the password trading center?