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According to Gillibrand and Lummis, the majority of altcoins are securities.

09 Jun 2022 By : COIN GABBAR
According to Gillibr

According to Gillibrand and Lummis, the majority of altcoins are securities.

The SEC receives the majority of cryptocurrencies. Senator Kirsten Gillibrand of the United States stated that Bitcoin and Ether would undoubtedly be commodities.

Senators Kirsten Gillibrand and Cyntia Lummis of the United States believe that most cryptocurrencies will be categorised as securities under their proposed legislation, although they have confirmed that Bitcoin (BTC) and Ether (ETH) will be classified as commodities.

Both Lummis and Gillibrand agreed with SEC Chair Gary Gensler's conclusion that most cryptocurrencies are securities under the Howey Test, with Gillibrand saying, "Most cryptocurrencies go to the SEC." Bitcoin and Ether would undoubtedly be considered commodities, and this has been agreed upon. Chairman Gensler and the chairman of the Commodity Futures Trading Commission both agree on this.

Reports that the bill will make the Commodity Futures Trading Commission the primary regulator were dismissed by Gillibrand. She stated, "I don't believe the CFTC is the major regulator." They only have to govern Bitcoin and Ether, the two most popular cryptocurrencies today.

The two made the remarks at a Washington Post event on Wednesday, only one day after the provisions of the Responsible Financial Innovation Act were released.

The CTFC's chair, Rostin Behnam, was also there and had a somewhat different perspective on the proportion of cryptocurrencies that are securities. While there are "probably hundreds" of coins that resemble security coins, he believes that the CFTC should regulate several commodity coins, such as BTC and ETH.

To establish whether a coin is classified as a security or a commodity, the new bipartisan law is intended to rely primarily on the Howey Test. The Howey Test is a framework established by the United States Supreme Court to determine whether a transaction is an investment contract and hence a security.

The SEC's investigation against Ripple, which began in December 2020, alleges that the company utilised its digital token XRP to generate cash in 2013, despite the fact that it was an unregistered security token at the time.