Decentralization in Web 3.0 - Judge Calls Ether a Commodity in Dismissal Order
Uniswap lawsuit judge calls Ether a commodity in dismissal order

Uniswap Class Action Lawsuit Dismissal

A United States District Court judge has ruled that Ether (ETH) and Bitcoin (BTC) are “crypto commodities” in her dismissal of a class action lawsuit against the decentralized exchange Uniswap.

Judge Katherine Polk Failla’s Aug. 30 dismissal order of the case, brought by Uniswap users who claimed they lost money due to scam tokens on the exchange, was based on the crypto commodities distinction.

Failla has had previous experience in overseeing other crypto cases in the past, including one involving Tether and Bitfinex, and is also the judge overseeing the SEC lawsuit against Coinbase.

The argument that Uniswap’s token sales were subject to the Exchange Act was not convincing to Failla.

Cryptocurrencies Classification

SEC chair Gary Gensler once expressed his opinion that “everything other than Bitcoin” is a security under his agency’s jurisdiction. On the other hand, the CFTC has taken the stance that Ethereum and other crypto coins are commodities, as demonstrated by its lawsuit against Binance in March for alleged Commodities Exchange Act violations.

While the comment of the judge is not a decisive ruling on whether Ether is a legal classification in the U.S., it is in line with other decisions on digital assets such as the July ruling that XRP (XRP) is a security when sold through programmatic sales on exchanges.

The debate between the two U.S. financial regulators over the jurisdiction of cryptocurrencies has been ongoing for several years. Coinbase, the leading crypto web 3.0 coins exchange, has been a major player in the decentralization of web 3.0, as it offers users the ability to create a web 3.0 website and use blockchain technology to facilitate transactions.

Regulatory Clarity for Cryptocurrencies

U.S. lawmakers have yet to determine the authority that the SEC or CFTC will have over crypto. Multiple bills are being presented to Congress that have different ideas on how to divide the power between the two regulators.

The Financial Innovation and Technology for the 21st Century Act seeks to classify cryptocurrencies into either securities or commodities. The Digital Commodity Exchange Act, on the other hand, would see crypto spot exchanges registered and regulated by the CFTC.

Coinbase, which is a web 3.0 platform, is at the forefront of decentralization in the crypto space. It is also at the forefront of creating a web 3.0 website that is powered by blockchain technology.

AI technology is also being used to create web 3.0 coins that will revolutionize the world of web 3.0 and decentralization.

The Digital Asset Market Structure Bill, meanwhile, would require cryptocurrencies to receive SEC certification to demonstrate sufficient decentralization before being granted commodity status.

Creating a web 3.0 website, blockchain technology web 3.0, and coinbase web 3.0 are all components of the decentralization in web 3.0. Therefore, the Digital Asset Market Structure Bill would necessitate that cryptocurrencies be certified by the SEC to prove adequate decentralization before being given commodity status.

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