US Commodity Futures Trading Commission (CFTC) Chairman Heath Tarbert said in a recent interview with Cheddar that XRP, currently the third-largest cryptocurrency by market capitalization, could be classified as securities by the Securities and Exchange Commission (SEC) . However, Tarbert said the situation is still unclear and the token can still be considered a commodity and therefore falls under the jurisdiction of the CFTC.
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"Part of the problem is that we share jurisdiction with the SEC. If it is securities, it is their jurisdiction. If it is a commodity, it is our jurisdiction. Therefore, we have been working closely with the SEC for the past year or Really consider which belongs to which box. "
Tarbert said that Bitcoin (BTC) and Ethereum (ETH) are the only digital assets under the jurisdiction of the CFTC. Regulators allow the development of futures markets, giving investors the opportunity to securely purchase any of the two approved digital assets recognized as commodities.
Tarbert pointed to several advantages of futures, such as price discovery, hedging, and risk management, which help legitimize fledgling markets.
An important court hearing against Ripple
It is reported that Ripple Labs is expected to face another court hearing on XRP securities litigation on January 15. If the judge rejects Ripple's motion, the case will continue.
Ripple Labs was charged in court in 2018 on suspicion of illegally profiting from XRP sales. If the SEC finally identifies such tokens as illegal securities, it will be subject to strict regulatory scrutiny.