Nigerian crypto advocates suggest regulating Bitcoin and Ethereum as commodities

ChainCatcher news, according to Cointelegraph, in light of a recent court ruling in Illinois classifying Bitcoin and Ethereum as commodities, Nigerian stakeholders are urging the Nigerian SEC to adopt a similar approach in its regulatory framework. As cryptocurrencies play an increasingly important role in the global financial landscape, there are calls for clear and appropriate classification of cryptocurrencies. Lucky Uwakwe, chairman of the Nigerian Blockchain Industry Coordinating Committee (BICCoN), emphasized the importance of clearly defining categories of crypto assets in an interview.

Lucky Uwakwe stated that this approach would provide creators with clear guidelines on where to seek regulation. The Nigerian SEC should keep in mind the necessity of establishing rules, defining the asset categories of crypto assets, or segmenting corresponding cryptocurrencies into asset categories, and explaining to the public how these cryptocurrencies qualify as securities or commodities.

Uwakwe pointed out that while both the U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission (CFTC) agree that Bitcoin and Ethereum are commodities, the distinction between Proof of Stake (PoS) and Proof of Work (PoW) protocols could change the classification of specific crypto assets.