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Cryptocurrencies started July well but continued poorly, with BTC price dropping to $56,771 at the time of writing. Germany continues to sell its 50,000 BTC. A 50,000 BTC sale in a short time is a huge amount for exchanges. Even Binance’s daily BTC trading volume is 50,000 BTC. Are there no good news? Of course, there are.
Cryptocurrency Victory in Court
The debate over which altcoins are commodities and which are securities continues among US institutions. Although the SEC has backed down on some issues, this struggle continues overall. Hours ago, there was a significant development regarding the classification of altcoins.
An Illinois court ruled in favor of the CFTC’s view on the classification of two cryptocurrencies, Olympus (OHM) and KlimaDAO (KLIMA). Both altcoins were recognized as commodities by the Northern District of Illinois Judge.
Olympus (OHM) and KlimaDAO (KLIMA)
In the case against Sam Ikurti and his company Jafia, the CFTC described the structure as a Ponzi scheme. In the lawsuit filed in 2022, Ikurti and his colleague Ravishankar Avadanam were accused of fraud. The case against Avadanam was dropped after a settlement with the institution. However, the process continued for the other individual.
The company collected $44 million from investors via YouTube, deceiving them with promises of up to 15% returns. All funds were spent on purchasing OHM and KLIMA Tokens. Judge Mary Rowland supported the CFTC’s stance that Jafia and its company were involved in fraud and that these were commodities.
Now the culprits must pay $120 million in compensation. The crucial point here is the recognition of the two cryptocurrencies as commodities. The CFTC’s statement read:
“The decision confirms not only that Bitcoin and Ethereum are commodities under the CFTC’s jurisdiction but also that two virtual currencies other than Bitcoin, OHM and Klima, are commodities.”
Despite the excessive sales in the market, the two altcoins did not experience a decline. While the SEC sees almost all altcoins as securities, the CFTC recognizes cryptocurrencies as commodities. With the enactment of the FIT21 law, the CFTC will gain more authority on this matter.
