Bitcoin and ethereum made gains of over 4% in the past 24 hours, as fallen crypto-tycoon Sam Bankman-Fried has bribery allegations added to the 12 existing charges against him.
Eethereum and llitecoin as commodities, like Bbitcoin
The US Commodities Futures Trading Commission (CFTC) has stated that alongside bitcoin, it classifies ethereum and litecoin as commodities, which would see them recognised as trading assets, similar to gold or oil.
The CFTC claimed in its suit against Binance on Monday, that the cryptocurrency exchange had engaged in transactions with “digital assets that are commodities including bitcoin (BTC), ether (ETH), and litecoin (LTC) for persons in the United States".
CCFTC chairman Rostin Behnam reiterated on Tuesday at a congressional hearing that he believes ethereum is a commodity, adding that "because they are listed on CFTC exchanges, we do have a regulatory relationship, obviously with the derivatives market and that product, but the underlying market as well".
Lawmakers inquired if Behnam still intends to create room for crypto innovation in the US, as he had previously expressed.
"It should be definitely a priority," he responded, adding that Europe has established an extensive framework to be implemented in the upcoming years, emphasising that the US should not fall behind in terms of innovation.
If ether is officially classified as a commodity, it could have more freedom and flexibility in terms of its development and use.
Sam Bankman-Fried accused of bribery by US prosecutors
On Tuesday, US prosecutors filed a revised indictment against Bankman-Fried, accusing him of paying a $40m bribe to Chinese government officials so that he could gain access to frozen Alameda Research trading accounts.
Alameda Research was the sister company of collapsed FTX cryptocurrency exchange, and was also registered in the Bahamas.
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The revised indictment states that Bankman-Fried persistently strived to release the frozen accounts associated with Alameda Research, which involved hiring lawyers to advocate for the company's interests in China.
"In or about November 2021, Samuel Bankman-Fried, a/k/a 'SBF,' the defendant, and others directed and caused the transfer of at least approximately $40m in cryptocurrency intended for the benefit of one or more Chinese officials in order to influence and induce them to unfreeze the accounts," it said.
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