US Court calls Bitcoin and Ethereum Commodities while Dismissing Uniswap Lawsuit. Court also gave Statement that There are No Regulations in Place to Call Crypto Security or Commodity.

If you're unaware, Uniswap was recently sued by a user who claims they lost money after buying scam tokens on the platform. They attempted to sue Uniswap and the CEO to recover their losses, claiming that it was their fault. However, the court ultimately rejected their claim, stating that the platform was sufficiently secured and that it was not their fault.

The complainant alleged that they had lost money after purchasing a number of "scam tokens" that were published and traded on the Protocol but turned out to be fake. The identities of the Scam Token issuers are essentially unknown and unknowable due to the Protocol's decentralized structure, leaving them with a recognizable damage but no recognizable defendant.

The court, however, stated that the smart contracts and the Ethereum and Bitcoin contracts were carried out legally while also adding that both Bitcoin and Ethereum are crypto commodities while responding to the complaint.

​

Court Saying Bitcoin and Ethereum are Crypto Commodities

Additionally, the court stated that nothing has been decided and that there are no such definitions of securities, commodities, or anything else when it comes to cryptocurrencies. This simply means that the court is saying that the previous legislation might not apply in the situation of cryptocurrency and that the SEC's argument that cryptocurrency is a security has no merit because it is yet to be determined.

​

No definition of Securities in case of Crypto

The complainant tried their best to file a lawsuit against Uniswap by alleging that the latter made money by raising the value of UNI by collecting transaction fees from complainant on behalf of the issuers of scam tokens. And even though they were aware of these tokens, they did nothing to remove them, that the CEO tweeted 2 times that the platform is safe and all secured but they still got scammed to which court responded by asking if they would sue the NASDAQ or the New York Stock Exchange for tweeting that their exchange was a secure place to trade after losing money, lmao.

However, the court ultimately rejected their claim, stating that the platform was sufficiently secured and that it was not their fault. Also, this case got some important words out of court.

​

Uniswap got their lawsuit Dismissed

TLDR: User sued Uniswap after getting scammed on the platform, but the court dismissed the case. Also stated that Bitcoin and Ethereum are commodities and that there is currently no law defining cryptocurrencies as securities.

[Source] Court Hearing Yesterday: Risley v. Universal Navigation Inc.