Bitcoin marked its 8th year as an official commodity on September 17th, when the US Commodity Futures Trading Commission (CFTC) reaffirmed its designation. This continues to set Bitcoin apart from other cryptocurrencies that have not yet received commodity status. The CFTC's decision provides a legal framework where Bitcoin is treated the same as traditional commodities like gold and precious metals.

Under Chairman Gary Gensler, the Securities and Exchange Commission (SEC) has long scrutinized various assets as potential securities, creating a complex and volatile regulatory environment for altcoins. In statements, Gensler has emphasized that whether a digital asset is a commodity or security depends on its specific characteristics.

Altcoins, including Ethereum, are generally less decentralized than Bitcoin. This gives the SEC more grounds to categorize them as securities. Other factors determining an asset's regulatory position include utility and third-party involvement. Additionally, the SEC considers the Howey Test, though controversial, as its primary tool for evaluating assets. The test looks at criteria like reasonable profit expectations and activity in a common enterprise.

Recognizing Bitcoin as a commodity represents an important step in legitimizing it for investors, favorably distinguishing it from altcoins under legal uncertainty. Despite the challenges posed for other cryptocurrencies, Bitcoin's status shows the progress already made and reinforces its position as the flagship of the entire crypto market.

Bitcoin Magazine