Federal Judge Sides With CFTC & Rules Virtual Currencies are Commodities

CFTC

It’s getting a bit clearer. With regulations and the corresponding legal actions come clarity and definition. A federal judge has sided with the CFTC (Commodity Futures Trading Commission) in declaring that virtual currencies are commodities. The CFTC, which is the chief regulator of futures and derivatives, ruled in 2015 that cryptocurrencies are commodities (staking out their turf) which has allowed them to bring a fraud case against a New Yorker and his company, Coin Drop Markets. So, the definition “phase” of cryptos is beginning and all because of a regulatory action. You can bet your last petunia that the SEC will consider cryptos a security and the inevitable turf war will begin as to which organization will be “THE” regulator. But, its a start to create clarity (and kind of catch up with the rest of the world).

(Bill Taylor/Managing Editor)


  • “Virtual currencies like bitcoin can be regulated as commodities by the U.S. Commodity Futures Trading Commission, a federal judge ruled.
  • U.S. District Judge Jack Weinstein in Brooklyn ruled that the CFTC had standing to bring a fraud lawsuit against New York resident Patrick McDonnell and his company Coin Drop Markets.
  • The CFTC, which is tasked with regulating commodity, futures and derivatives markets, first determined that virtual currencies, also known as cryptocurrencies, are commodities in 2015.

U.S. Commodity Futures Trading Commission, a federal judge ruled Tuesday.
U.S. District Judge Jack Weinstein in Brooklyn ruled that the CFTC had standing to bring a fraud lawsuit against New York resident Patrick McDonnell and his company Coin Drop Markets, allowing the case to go forward.
Weinstein also entered a preliminary injunction barring McDonnell and Coin Drop Markets from engaging in commodity transactions…

The CFTC, which is tasked with regulating commodity, futures and derivatives markets, first determined that virtual currencies, also known as cryptocurrencies, are commodities in 2015…”


Source: CNBC.com