Summary
TLDR: The legal status of ether as a commodity is heavily debated in the crypto world. Ether can be seen as a commodity, a consumable commodity, and an interest-bearing asset. US policymakers need to address the issue of regulating ether, as it can exist simultaneously as a commodity or not. Other countries like Switzerland and the EU are also grappling with how to regulate crypto. The interpretation of ether’s status will determine its legal treatment.
Key Points
1. The topic of ether’s legal status as a commodity is heavily debated in the crypto community, with some viewing it as both a commodity and not a commodity simultaneously, similar to Schrödinger’s cat paradox in quantum mechanics.
2. The value creation on Ethereum is three-fold, with ether serving as a store of value, a consumable commodity, and an interest-bearing asset. The definition of ether can vary depending on how it is used within the Ethereum network.
3. The real issue lies in how the US will regulate ether, as the current lack of clear and meaningful crypto regulation leaves the cryptocurrency in a state of uncertainty. Other countries, such as Switzerland and the EU, have also faced challenges in defining and regulating ether within their jurisdictions.