Since the start of June, Bitcoin Cash (BCH) has been on a 98% surge, jumping from $113 to $224. This significant increase is due to the asset’s selection for EDX Markets, a new crypto exchange backed by major Wall Street players Charles Schwab, Citadel Securities, and Fidelity Digital Assets. The exchange has chosen Bitcoin, Ethereum, Litecoin, and Bitcoin Cash as its first assets, due to their status as commodities, which significantly mitigates potential legal challenges.
The SEC has been targeting major crypto brands for allegedly flogging unregistered securities. Earlier this month, Coinbase and Binance were targeted, as well as Kraken in February, who received a $30 million fine. SEC Chairman Gary Gensler has made it clear that Bitcoin is a commodity, and the CTFC has stated that Ethereum is a commodity as well. Bitcoin Cash and Litecoin are both Bitcoin forks, meaning they likely have the same status in the eyes of regulators.
Greg Moritz, Co-Founder at the crypto hedge fund AltTab Capital, said that “none have been listed by the SEC as unregistered securities”, and EDX Markets CEO Jamil Nazarali said he felt “very comfortable” that the four assets weren’t securities. For now, these four cryptocurrencies will be available to institutional investors, however, as regulations evolve, exchanges like EDX may broaden their offerings.
