Bitcoin And Cryptocurrencies Are Commodities, Federal Court Rules

by vstar on

– Bitcoin News

– Bitcoin News

Bitcoin and Cryptocurrencies Are Commodities federal Court Rules

Regulation

Courts, financial regulators, legislators and governments around the world are struggling to fit bitcoin into their existing frameworks. Different legal definitions for the disruptive innovation that is cryptocurrencies can have profound ramifications for the instruments in each jurisdiction such as what agencies will regulate them, under what laws, and how users will be taxed, if at all. A new ruling by a US federal court now tilts the scales towards viewing them as commodities, but that is not likely to be the final word as American lawmakers have yet to have their say.

Also Read: Taiwanese Airline to Accept Cryptocurrency Payments for Flight Tickets

Cryptocurrencies Are Commodities

Bitcoin and Cryptocurrencies Are Commodities federal Court RulesBitcoin-like cryptocurrencies can be regulated by the U.S. Commodity Futures Trading Commission (CFTC), U.S. District Judge Jack Weinstein ruled on Tuesday. The federal judge thus upheld the CFTC’s position from 2015 that cryptocurrencies are commodities, saying it was supported by the plain meaning of the word “commodity” and that the agency had “broad leeway to interpret the law” regulating commodities (The Commodity Exchange Act of 1936).

This ruling came about because the court had to decide whether the CFTC was able to prosecute an alleged fraudster who promised clients cryptocurrency trading advice but never delivered (Patrick McDonnell and his company Coin Drop Markets). By allowing the agency to continue with the case, the judge set a precedent for all other legal cases where defense lawyers might have argued that the CFTC has no standing because bitcoin is not a commodity.

Many ICO Tokens Are Still Securities?

Bitcoin and Cryptocurrencies Are Commodities federal Court RulesThis development is unlikely to deter other American regulatory agencies from also asserting their jurisdiction over the ecosystem. Ropes & Gray investment management counsel Ed Baer explained: “While District Judge Weinstein’s ruling confirms the U.S. Commodity Futures Trading Commission’s prior determination that virtual currencies like bitcoin are “commodities” subject to regulation by the CFTC, recent statements by U.S. Securities and Exchange Commission (SEC) Chairman Jay Clayton suggest that various types of these cryptocurrencies – especially coins issued in initial coin offerings (ICOs) – may be securities subject to regulation by the SEC.”

He added: “The challenge for cryptocurrency exchanges and investors, as well as for regulators such as the SEC and CFTC, will be to determine which of the over 1,000 types of these cryptocurrencies are securities and which ones are not. Given that the test used to determine whether an instrument is a security was developed more than 60 years before Satoshi Nakamoto published the paper describing bitcoin, the uncertainty around the regulatory treatment of most cryptocurrencies will remain despite Judge Weinstein’s ruling.”

What ramifications if any do you expect this ruling to have on cryptocurrencies? Share your thoughts in the comments section below!


Images courtesy of Shutterstock.


Do you like to research and read about Bitcoin technology? Check out Bitcoin.com’s Wiki page for an in-depth look at Bitcoin’s innovative technology and interesting history.

Wed, 07 Mar 2018 23:26:45 +0000
Avi Mizrahi

VIEW ON Eyefootball

Categories: Tech

11 comments on “Bitcoin And Cryptocurrencies Are Commodities, Federal Court Rules”

Carmen Ziebol . Jun 10 at 10:01 pm

My family all the time say that I am wasting my time here at web, however I know I am getting experience all the time by reading such fastidious content.|

furtdsolinopv . Jul 4 at 6:08 pm

It is best to take part in a contest for one of the best blogs on the web. I’ll recommend this web site!

furtdso linopv . Jul 14 at 3:51 pm

After research just a few of the weblog posts on your web site now, and I really like your method of blogging. I bookmarked it to my bookmark web site listing and will probably be checking again soon. Pls try my website as well and let me know what you think.

Brigida Balcos . Jul 16 at 12:38 am

Good day! I could have sworn I’ve been to this blog before but after reading through some of the post I realized it’s new to me. Nonetheless, I’m definitely delighted I found it and I’ll be book-marking and checking back frequently!|

Anja Hodor . Jul 16 at 9:30 am

I could not resist commenting. Well written!|

Shelley Musch . Jul 17 at 2:23 am

I think that everything said was very logical. But, what about this? suppose you added a little information? I ain’t suggesting your content isn’t solid., but what if you added a post title that makes people want more? I mean BLOG_TITLE is a little boring. You could glance at Yahoo’s home page and note how they create post titles to get viewers to click. You might add a related video or a related picture or two to grab readers interested about what you’ve written. In my opinion, it might make your posts a little bit more interesting.|

Elin Deterline . Jul 17 at 10:56 am

When some one searches for his vital thing, so he/she wishes to be available that in detail, thus that thing is maintained over here.|

Seymour Cimini . Jul 17 at 9:27 pm

I like the valuable info you provide in your articles. I will bookmark your blog and check again here frequently. I’m quite sure I’ll learn plenty of new stuff right here! Best of luck for the next!|

microsoft office 365 home premium product key 94fbr . Jul 20 at 7:07 pm

Microsoft Office or are just looking to refresh your skills for any job or the one you’re already in, you’re in the right spot. Our lessons give you a mix of text message, video, interactives, and troubles to practice what get learned, so you can learn the basics and more of Access, Stand out, Outlook, PowerPoint, Publisher, and Word. You’ll also learn tips, tricks, shortcuts, and more to higher use these programs during working hours and life. Let’s start!

malaysia tour agency . Jul 21 at 4:11 pm

Hi, just required you to know I he added your site to my Google bookmarks due to your layout. But seriously, I believe your internet site has 1 in the freshest theme I??ve came across. It extremely helps make reading your blog significantly easier.

malaysian tour agency . Jul 21 at 6:53 pm

I’m really enjoying the design and layout of your site. It’s a very easy on the eyes which makes it much more enjoyable for me to come here and visit more often. Did you hire out a designer to create your theme? Outstanding work!

Your email address will not be published.

Advertisement

Advertisement