In a landmark announcement that sent ripples through the cryptocurrency regulatory landscape, Commodity Futures Trading Commission Chairman Heath Tarbert declared on October 10, 2019, that Ethereum is a commodity under U.S. law — placing the world’s second-largest cryptocurrency under the same regulatory umbrella as Bitcoin.
TL;DR
- CFTC Chairman Heath Tarbert officially declared Ethereum a commodity at the Yahoo Finance Summit
- The ruling opens the door for ETH-based futures contracts and derivatives products
- Forked assets like Ethereum Classic will receive the same commodity classification
- The CFTC and SEC both agree that BTC and ETH are not securities
- Tarbert urged the U.S. to take a leadership role in blockchain and digital asset technology
A Historic Declaration at the Yahoo Finance Summit
Speaking at the Yahoo Finance Summit, Tarbert made the most definitive statement to date regarding Ethereum’s regulatory status in the United States. “We’ve been very clear on bitcoin: bitcoin is a commodity. We haven’t said anything about ether — until now. It is my view as chairman of the CFTC that ether is a commodity,” Tarbert stated.
The announcement marked the first time the CFTC explicitly classified Ethereum under its regulatory jurisdiction. While the commission had long maintained that Bitcoin was a commodity, Ethereum’s status had remained ambiguous, creating uncertainty for institutional investors and derivatives product developers alike.
Ethereum was trading around $191.66 at the time of the announcement, according to CoinMarketCap data, with a total market capitalization of approximately $20.7 billion. Bitcoin held steady near $8,586 with a market cap of $154.4 billion.
What This Means for Ethereum Futures
Tarbert did not stop at the classification — he hinted at the possibility of Ethereum futures products entering the market in the near future. Given that Bitcoin futures already trade on both the CME and the recently launched Bakkt platform, the door is now open for similar ETH-denominated derivatives contracts.
The timing is significant. Bakkt, the physically-settled Bitcoin futures exchange backed by Intercontinental Exchange (ICE), had launched just weeks prior in September 2019. While Bakkt’s early volumes were underwhelming, the regulatory clarity around Ethereum could encourage new product development across the derivatives space.
Forked Assets Receive Equal Treatment
When asked whether forked cryptocurrencies would receive the same classification, Tarbert was equally clear: assets like Ethereum Classic would inherit the commodity status of their parent chain, unless the fork itself raised securities law concerns under the Howey Test.
“It stands to reason that similar assets should be treated similarly,” Tarbert explained. “If the underlying asset hasn’t been determined to be a security and is therefore a commodity, most likely the forked asset will be the same.”
CFTC and SEC: A Coordinated Stance
Tarbert emphasized that the CFTC is working closely with the Securities and Exchange Commission on cryptocurrency regulation. Both agencies agree that Bitcoin and Ethereum do not qualify as securities — a position the SEC first articulated in 2018 when William Hinman, then-director of the SEC’s Division of Corporation Finance, stated that ETH was sufficiently decentralized to avoid securities classification.
Jake Chervinsky, General Counsel at Compound Finance, contextualized the announcement on social media: “The CFTC calling ETH a commodity has nothing to do with securities laws at all. Securities are a type of commodity. Financial instruments can be one, both, or neither. Not to mention that the SEC already said ETH isn’t a security last summer.”
Libra Still in Regulatory Limbo
Tarbert also addressed Facebook’s Libra project, noting that regulators had not yet determined whether the stablecoin would be classified as a security or a commodity. “Is it a security, first and foremost. And if it isn’t a security, it is most likely a commodity,” he said. The comments reflected ongoing regulatory scrutiny of the social media giant’s ambitious digital currency plans.
A Pro-Innovation Stance
Tarbert’s positions echoed those of his predecessor Christopher Giancarlo, widely known as “Crypto Dad” for his supportive stance on digital assets. The new chairman stressed the importance of American leadership in blockchain technology, stating: “I want to stress the importance of blockchain and digital assets to the United States, and in particular, as CFTC Chairman, I want the U.S. to lead in this technology.”
Why This Matters
The CFTC’s explicit classification of Ethereum as a commodity removed one of the most significant regulatory clouds hanging over the Ethereum ecosystem. For developers building decentralized applications, DeFi protocols, and enterprise solutions on Ethereum, the clarity means reduced legal risk and a more predictable path forward for token-based projects. For institutional investors, it signals that Ethereum-based derivatives — including futures and options — could soon become available through regulated U.S. exchanges, unlocking a new wave of capital inflows into the second-largest cryptocurrency by market cap.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always conduct your own research before making investment decisions.
Tarbert calling ETH a commodity at the Yahoo Finance Summit opened the door for futures. this was the real regulatory win nobody celebrated enough
eth_commodity_ tarbert declaring ETH a commodity at the yahoo finance summit was the clearest regulatory moment crypto ever had. then gensler happened
Both CFTC and SEC agreeing that BTC and ETH are not securities was the clearest regulatory clarity we ever got. Shame it didn’t last.
didnt last because the SEC immediately started claiming jurisdiction over most other tokens. ETH and BTC got a pass, everything else was up for grabs
the SEC under gensler basically reversed the clarity tarbert created. every token became a potential security overnight
reg_trap gensler basically reversed the clarity tarbert created. every token became a potential security overnight except ETH and BTC. regulatory whiplash
forked assets getting the same commodity classification was the underrated part. protected etc too
Tarbert specifically mentioned forked assets getting the same classification. that single sentence probably saved ETC from delistings across every major US exchange
tarbert declaring eth a commodity at the yahoo finance summit was huge. opened the door for cme eth futures
Tarbert urging US leadership in blockchain in 2019 and then watching the industry move offshore for the next 5 years. the irony writes itself
Tarbert literally said ether is a commodity at the Yahoo Finance Summit and then the SEC spent 4 years pretending it might be a security. pick a lane
Mira Korhonen the CFTC and SEC agreeing on ETH status in 2019 was peak clarity. then Gensler happened and undid all of it with enforcement-by-litigation
ETC getting commodity status by association was the most underrated outcome. that coin wouldve been delisted from every US exchange without this ruling
Tarbert urging US leadership in blockchain while his own agency could barely keep up with enforcement. the gap between rhetoric and capacity was massive
the gap is still massive. regulators talk about innovation while their enforcement teams are 3 years behind the market
Tarbert calling ETH a commodity in 2019 while the SEC pretends its still maybe a security in 2026. pick a lane guys
kompakt_rat exactly. CFTC said commodity in 2019, Gensler spent 4 years refusing to confirm it, and now we’re back to where Tarbert started. wasted half a decade on ambiguity
the lane pick decided who got the enforcement budget, so both agencies sat on ether for years. jurisdiction chicken, and retail paid the ambiguity tax
Tarbert declaring ETH a commodity in 2019 and then Gensler spending 4 years pretending he might reclassify it as a security. regulatory whiplash defined an entire cycle
ETC getting automatic commodity status through the fork classification was the most underrated outcome of this ruling. protected it from delistings that would have killed the project
agreed, and the fork clause kept ETC on futures venues that were purging anything with securities risk. that one sentence in the ruling did more for ETC than any marketing cycle since
Tariq M. gensler basically weaponized the ambiguity Tarbert left. the CFTC said commodity but never specified what happens after proof of stake. that gap became the entire SEC case