News

CFTC Classifies Ethereum and Litecoin as Commodities in KuCoin Case

Ethereum (ETH) and Litecoin (LTC) are now recognized as commodities by CFTC in a lawsuit against KuCoin for regulatory violations.
Published by
CFTC Classifies Ethereum and Litecoin as Commodities in KuCoin Case

Highlights

  • Ethereum and Litecoin classified as commodities in CFTC's complaint against KuCoin.
  • CFTC alleges KuCoin engaged in illegal commodity transactions without proper registration.
  • The regulatory body demands disgorgement, civil penalties, and permanent bans from KuCoin.

The Commodity Futures Trading Commission (CFTC) has complained about the entities that own KuCoin. The allegation calls attention to the illegal transactions involved in off-exchange commodity futures activities. KuCoin is said to have been employed in soliciting and accepting orders of different commodity transactions without CFTC registration. This action highlights the intention of the regulatory body to ensure compliance in the digital asset area.

KuCoin allowed commodities trading as per CFTC. This operation made the exchange fall under the supervisory scope of CFTC. It required KuCoin to register with the commission and comply with all applicable regulations. The complaint requests relief, including disgorgement, civil penalties, and permanent trading and registration bans.

Advertisement

CFTC Classifies Ethereum and Litecoin as Commodities

The complaint of the CFTC against KuCoin is a milestone in the determination of digital assets’ classification. The CFTC’s complaint becomes an explicit recognition of Ethereum and Litecoin as commodities by including them. This categorization has wide-ranging regulatory implications for digital assets. Exchanges that handle these assets need to follow strict CFTC regulations.

The CFTC’s actions are part of a broad regulatory emphasis on adherence within the cryptocurrency sector. KuCoin is required to provide a host of remedies by the commission, one of which is a permanent injunction against future violations. This underscores the extent to which the CFTC takes seriously the enforcement of regulatory compliance in the digital asset market.

Advertisement

DOJ, CFTC Pursue Crypto Exchanges for Legal Compliance

The CFTC’s action against KuCoin comes after the DOJ filed a related lawsuit. The suit filed by the DOJ against the exchange and its co-founders alleged that the latter had broken the Bank Secrecy Act. Claims cover the lack of an efficient know-your-customer (KYC) policy and the transfer of more than $4 billion in questionable funds.

The case of KuCoin has nothing unique to it, such as when the government acts on a cryptocurrency exchange. Earlier, KuCoin was settled by the New York Attorney General’s office for $22 million over related charges. More so, DOJ and CFTC also had their eyes on Binance, which is yet another one of the leading crypto exchanges in a large settlement regarding anti-money laundering shortcomings. This is an example of the increasing regulatory oversight of cryptocurrency exchanges and the significance of KYC and anti-money laundering policy compliance.

Read Also: Circle Expands USDC with CCTP to Solana Ecosystem

Advertisement
Share
Maxwell Mutuma

Maxwell is a crypto-economic analyst and Blockchain enthusiast, passionate about helping people understand the potential of decentralized technology. I write extensively on topics such as blockchain, cryptocurrency, tokens, and more for many publications. My goal is to spread knowledge about this revolutionary technology and its implications for economic freedom and social good.

Published by
Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Recent Posts

  • News

Canary XRP ETF Filing Removes SEC Delay Clause, Targets November Launch

Canary Funds has filed an updated S-1 registration for its XRP spot exchange-traded fund (ETF).…

October 31, 2025
  • News

CFTC, SEC Launch ‘New Era of Collaboration’ to Clarify Crypto Rules, End Regulation by Enforcement

The U.S. Commodity Futures Trading Commission (CFTC) and Securities and Exchange Commission (SEC) have entered…

October 31, 2025
  • News

Senate Committee Finalizes Updated Crypto Market Structure Bill Draft, Release Expected In Days

The U.S. Senate committee is set to release an updated draft of the Crypto Market…

October 30, 2025
  • News

€648 Billion Nordea To Allow Customers to Trade Bitcoin-Linked ETFs

Nordea Bank, one of Europe’s largest financial institutions, is allowing customers to trade Bitcoin-linked funds…

October 30, 2025
  • News

Uphold Joins Gemini, Relaunches XRP Debit Card Following SEC Lawsuit Resolution

Uphold has relaunched its XRP Debit Card across the United States following the resolution of…

October 30, 2025
  • Altcoin News

Breaking: XRP Treasury Evernorth Debuts on Nasdaq Under XRPN Ticker After $1B Token Purchase

Evernorth Holdings, a Ripple-backed XRP treasury company, has officially made its debut on Nasdaq under…

October 30, 2025