The commodity futures trading Commission (CFTC) has expressed a mixed position regarding Gram tokens, calling them “consumer goods” that can be regulated by the securities Act.
In early February, judge Kevin Castel of the district court for the southern district of new York asked the CFTC to make an opinion on whether Gram tokens are securities.
The CFTC’s chief legal adviser sent a response letter stating that “digital currency is a consumer commodity”, while indicating that this opinion is held only by the CFTC’s legal Department. The organization as a whole or its individual representatives may have a different view on this issue.
In its letter, the CFTC refers to the words of Telegram, which claims that Gram tokens are not securities, so they should not fall under the securities Act of 1933. However, the CFTC also pointed out that if tokens are considered to be consumer products, then according to the commodity exchange Act, many securities can also be classified as mass-market goods to which securities laws apply.
“Thus, any digital asset may or may not be regulated by the securities law. But this does not depend on whether such an asset is a consumer good. It is a question of whether a digital asset is considered a security within the framework of the securities Law itself»
The CFTC prefers to refrain from making clear conclusions regarding Gram tokens, stating that it does not have a clear answer to the question raised. The CFTC letter came a day before the date of the next hearing in the Telegram case, scheduled for February 19. However, judging by the uncertain position of the experts of the commodity futures trading Commission, it is unlikely that it will help clarify the situation.
As for the US securities and exchange Commission (SEC), it insists that Gram tokens have no intrinsic value and cannot be a “commodity”. However, last month, the company Telegram was supported by the human rights group Blockchain Association, sending the court an expert opinion.