The vast majority of arbitrage of fungible assets happens in commodities, not securities. The SEC regulates securities. The CFTC regulates commodities.
> Bitcoin is considered a commodity and is the underlying asset in bitcoin futures contracts… Bitcoin futures contracts — like other commodity futures contracts such as corn futures, market index futures, or gold futures — are regulated by the CFTC and must trade on CFTC-regulated exchanges.
Why not? It is highly litigated and still abundantly unclear whether certain cryptocurrencies are securities or commodities. That's the whole point of these legal battles. If it was clear, they would not be ongoing.
based on the definition of what a security and what a commodity, it should be abundantly clear to anyone over the age of 5 what crypto falls under:
Commodities are consumable goods that get transformed through usage in industrial or commercial processes. Gold and silver can be transformed into jewelry. Securities, on the other hand, grant holders the right to periodic benefits like dividends, coupons, principal repayments and potential profit shares.
How are you consuming crypto? What commercial or industrial process are being used?
> Commodities are consumable goods that get transformed through usage in industrial or commercial processes. Gold and silver can be transformed into jewelry. Securities, on the other hand, grant holders the right to periodic benefits like dividends, coupons, principal repayments and potential profit shares.
> How are you consuming crypto? What commercial or industrial process are being used?
What rights does holding bitcoin confer to the holder? I get no dividends, coupons, principle repayments or potential profit shares.
We’ve nicely entered why this argument still rages on. It doesn’t fit cleanly into either definition.
> In economics, a commodity is an economic good, usually a resource, that specifically has full or substantial fungibility: that is, the market treats instances of the good as equivalent or nearly so with no regard to who produced them.
I am pretty sure you can get BTC from any exchange and sell it on any other exchange. Whereas, with stocks, you generally cannot as a retail investor.
That is, I suppose, what makes crypto a commodity at its core.
The fact that you can create a crypto more easily today has nothing to do with whether or not crypto is a commodity (though I suspect that point is not really why you made this comment).
It's the fact that there's an overwhelming number of exchanges that willingly accept crypto from other exchanges coupled with the fact that anyone can mine/produce crypto. The moment that there were two places to get BTC that accept BTC from each other in exchange for money, it was a commodity.
> The vast majority of arbitrage of fungible assets happens in commodities, not securities.
Yeah, I'm gonna say no to that. I don't have numbers but if total trading volume on commodities is anything more than a tiny fraction of stock/derivatives trading on any given day I eat my proverbial hat.
Regardless, "The CFTC needs to sue us, not the SEC" isn't the argument being made by Robinhood either.
I should have said "the derivatives in question" instead of simply "derivatives".
My point stands: OP claimed that most trading volume happens in securities and it simply does not. I highly doubt securities amount to more than the $20 quadrillion settled in the CFTC's realm last week.
I'm not claiming the jurisdictions of the CFTC and SEC are mutually exclusive. My point stands.
Again, that's wrong. The CFTC absolutely does not handle regulation of options and bond funds and ETFs, etc... You seem to be invoking this "commodities" thing as a trick, and that's not how it works. We've seen this repeatably now where the SEC has to come at crypto outfits with a cluebat and explain to them (in court!) that yes: crypto assets are securities. Why do you really think it's going to be different this time?
"The Commodity Futures Trading Commission is an independent U.S. government agency that regulates the U.S. derivatives markets, including futures, options, and swaps."
Also from their official website: 20 quadrillion per week in settled trades. Too lazy to look up the equities numbers, but I would bet everything I own it's lower.
Also from the CFTC's website:
"Bitcoin is considered a commodity and is the underlying asset in bitcoin futures contracts… Bitcoin futures contracts — like other commodity futures contracts such as corn futures, market index futures, or gold futures — are regulated by the CFTC and must trade on CFTC-regulated exchanges."
That's theatrics. Everyone on Wall Street and Main Street knows the true cost of living — housing, gas, and grocery prices — has increased dramatically more than any Fed-anointed number with the word "inflation" near it.
Certainly not for everyone. If you have a fixed mortgage, and are careful what you buy, you can live like its 2019.
I was at the grocery store a week ago and everything in my basket was reasonably priced for 2019: pork, bread, bananas, carrots and potatoes. Is it a coincidence I happened to buy only things that didn't experience inflation? Heck no. Avoid name brands.
Also if you "have a fixed mortgage" you probably have a fixed mortgage that was locked in at drastically lower rates than current market rates, which is the most advantageous position possible
Same with Polish, but in Czech where the word originates from, there is a difference and normal work is called "práce" not "robota" which is reserved for forced labor or as an in-jest name for work.
Interestingly, the Chernobyl liquidators forced to clean the roof were referred to as robots. I think the TV series expanded that to "bio robots", but books about the incident from tbe nineties simply used robot.
You can do extremely complicated things on chain that require manual human analysis to figure out how to report it. You can do this thousands of times per year. It adds up to a huge amount of work.
Part of the transaction costs for your trading business is properly accounting for these transactions; if that is a huge amount of work and makes the transactions unprofitable, well, don't do them.
If you do complex transactions thousands of times per year, it would be reasonable to expect (and in many places be a legal duty) to figure out how you'll be accounting for these transactions in your books before the first transaction is made, and keep up to date bookkeeping for these operations continuously - not just making some reporting long after the fact. Like, such activities are so clearly above the level where either you hire a certified accountant or become a skilled accountant yourself, that's table stakes for doing such things. You're effectively running a business, so you're required to act like one, you're not permitted (generally, depends on jurisdiction) to just wing it.
Forgive my ignorance; could you give an example of something that would be more complex, especially to the point of requiring human intervention? Does the tax code care about more granularity then that you started with X USD/Euros/BTC/ETH/... and ended with Y USD/Euros/BTC/ETH/...?
"Lead poisoning kills millions annually. One country is showing the way forward."
Extremely ironic and deceptive title, considering Bangladesh was also one of the only countries who's created a culture completely fine with defrauding and poisoning its own people.
Not weighing cultures against one another. It's just dumb to praise a country for fixing a problem when said country is the sole creator of it. It is the bare minimum not to poison people. We don't need to be giving pats on the back for adhering to the bare minimum.
