- Judge Katherine Polk Failla declares Ethereum and Bitcoin as “crypto commodities” while dismissing the Uniswap lawsuit, offering a definitive stance in the ongoing SEC vs. CFTC jurisdiction battle.
- Ethereum experiences a 4% price surge, with a single whale purchasing 8,000 ETH at $1,708.
In a move that has sent shockwaves through the cryptocurrency community, United States District Judge Katherine Polk Failla has dismissed a class-action lawsuit against Uniswap and declared Ethereum (ETH) a commodity. According to a recent Coin Telegraph report, this groundbreaking decision offers a definitive stance in the ongoing jurisdiction battle between the SEC and the CFTC.
Ethereum: A Commodity, Not a Security
Judge Failla’s ruling made it clear that Ethereum and Bitcoin are “crypto commodities,” undermining arguments that sought to classify these tokens under securities laws. As @BillHughesDC stated in a tweet,
The SDNY (Failla, J.) also explicitly found in its August 29 decision in Risely v. Uniswap that
Ethereum is a commodity, not a security.
No analysis of the issue, just the conclusion, but still, pretty definitive statement if you ask me.
👀👀👀 pic.twitter.com/KEc5Pf5kTC
— Bill Hughes : wchughes.eth 🦊 (@BillHughesDC) August 30, 2023
Uniswap Lawsuit Dismissed
Six crypto investors had filed the lawsuit in April 2022 after falling prey to a scam involving Uniswap tokens. The plaintiffs argued that Uniswap Labs controlled its liquidity pools, including those created by scammers, and thus should be held accountable. Judge Failla dismissed these arguments, stating that the plaintiffs’ concerns were better addressed by Congress, not the court. Her ruling indicated that it defies logic to hold a software platform liable for third-party misuse.
Regulatory Uncertainties and Failla’s Previous Engagements
The ruling comes at a pivotal time, as U.S. financial regulators like the SEC and CFTC grapple over the jurisdiction of cryptocurrencies. Judge Failla herself is also overseeing the SEC lawsuit against Coinbase, adding more weight to her Uniswap judgment. As @CollinBrownBTC tweeted,
https://twitter.com/CollinBrownBTC/status/1697110950376030214
ETH Price Surges: Will It Reach $2,500?
In the aftermath of the ruling, Ethereum’s price jumped by about 4%. A single whale even splurged $13.6 million USDC to purchase 8,000 ETH at $1,708, as reported by @lookonchain. This surge brings ETH closer to breaking its recent resistance levels, fueling speculations that it might reach the $2,500 mark soon.
The price of $ETH jumped ~4%.
And a whale spent 13.66M $USDC to buy 8,000 $ETH at $1,708 just now.https://t.co/gpwcokqCv1 pic.twitter.com/cBz3ti22st
— Lookonchain (@lookonchain) August 29, 2023
Market Reactions and Beyond
Not just Ethereum, but Bitcoin prices also showed a positive uptick following the recent regulatory clarifications. The impact was immediate; BTC prices went as high as $28,200 before settling at around $27,400. Meanwhile, ETH plateaued at $1,740 and later stabilized at approximately $1,720. While the long-term impacts of these legal rulings on cryptocurrency prices are yet to fully materialize, the current landscape suggests a bullish future for Ethereum.
