Law.com reported “that virtual currencies can be regulated by the U.S. Commodity Futures Trading Commission [CFTC].” The March 8, 2018 report entitled “Federal Court Just Ruled CFTC Can Regulate Crypto—But Agency Isn’t Alone” included these questions resolved by US District Judge Weinstein (Eastern District of New York) with a resounding “YES”:
Is virtual currency a commodity?
Does the CFTC have jurisdiction over fraud that does not directly involve the sale of futures or derivative contracts?
Here’s the background on the case:
The CFTC sued Patrick McDonnell and his company CabbageTech Corp. in January, alleging fraud and misappropriation connected to cryptocurrency purchases. Pro se litigant McDonnell attempted to have the suit thrown out for lack of jurisdiction, but the judge ruled in favor of the CFTC.
This ruling will likely have significant impact on cryptocurrencies!