The core of the lawsuit is “Is the token a security or a commodity?”: Bernstein | CoinDesk JAPAN | Coin Desk Japan

Whether crypto tokens are securities or commodities is at the core of the US Securities and Exchange Commission’s (SEC) lawsuit against crypto exchanges Binance and Coinbase, investment firm Byrne said. Stein said in a June 6 investigative report.

The first judicial decision on the matter will be the lawsuit filed by the SEC against Ripple, the report states. A ruling on the lawsuit is expected later this year and will soon set the course for the industry.

On June 5, regulators filed a lawsuit against Binance US operator Binance and Binance founder and CEO Changpeng Zhao, AKA CZ, for allegedly violating federal securities laws. A day later, it sued rival exchange Coinbase on similar charges.

Crypto regulation “has become a purely political debate between Republicans and Democrats,” Bernstein said.

Analysts Gautam Chhugani and Manus Agrawal said, “We are building a functional framework for digital commodities and stablecoins for payments, giving the Commodity Futures Trading Commission (CFTC) more than the SEC. The intention seems to be to give a lot of regulatory power.”

The CFTC has already sued Binance for luring American investors into its offshore derivatives platform, so the SEC is expected to follow suit, alleging securities violations, and most tokens will be considered securities. was

The U.S. regulatory action is disappointing, Bernstein says, but it’s not an “existential crisis.”

Bad news as most of the capital that had to leave the crypto market has already pulled out and both Bitcoin (BTC) and Ethereum (ETH) have since traded up around 3%. appears to be fully priced, the report said.

｜Translation: coindesk JAPAN
｜Editing: Toshihiko Inoue
| Image: Mark Van Scyoc/Shutterstock
| Original: Crypto Tokens’ Status as Securities or Commodities Is Key to SEC’s Binance, Coinbase Suits: Bernstein