Cryptocurrencies Ruled “Commodities”; Now Subject to CFTC Oversight
A Federal Judge has ruled that Cryptocurrencies like Bitcoin have evolved to become commodities by definition, and are thus subject to oversight and regulation by the Commodity Futures Trading Commission.
The ruling stems from a case involving “My Big Coin,” a platform that claimed to manage a legitimate cryptocurrency, but was in fact defrauding investors to the tune of $6 million.
“The order by Senior Judge Rya W. Zobel came on Sept. 26 in the My Big Coin (MBC) case. It affirmed CFTC’s assertion that MBC is a commodity under the Commodity Exchange Act (CEA) as MBC “is a virtual currency and it is undisputed that there is futures trading in virtual currencies (specifically involving Bitcoin).” The court agreed that the interpretation of the term “commodity” should be broadened to categories and not specific items. These include “a host of specifically enumerated agricultural products” and “all other goods and articles … and all services rights and interests … in which contracts for future delivery are presently or in the future dealt in.””
You can read the full CFTC press release on the decision HERE.
For more information on access to Federal court records, or if you have any other questions about our other products and services, please contact us at 866-643-7084 or firstname.lastname@example.org