Cryptocurrencies are commodities, according to four court cases involving the U.S. Commodity Futures Trading Commission (CFTC). A federal judge recently ruled that a token is a commodity, certifying the CFTC’s authority to prosecute fraud and manipulation in the crypto space. In her ruling, the judge cited three other crypto-related cases that arrive at the same conclusion.
Also read: Yahoo! Japan Confirms Entrance Into the Crypto Space
Cryptocurrencies Are Commodities
Federal Judge Rya Zobel ruled last week that the U.S. derivatives watchdog has the “authority to prosecute fraud and manipulation in the crypto space,” CFTC Chairman Chris Giancarlo confirmed on Monday. The case involves My Big Coin Pay Inc. and a token called my big coin (MBC). In her decision document, Zobel cited three other crypto-related cases involving the CFTC where cryptocurrencies are considered commodities.
Following last week’s ruling, the CFTC announced Wednesday:
Federal court finds that virtual currencies are commodities…Senior Judge Rya W. Zobel of the U.S. District Court for the District of Massachusetts, entered an order holding that the Commodity Futures Trading Commission (CFTC) has the power to prosecute fraud involving virtual currency.
CFTC Director of Enforcement, James Mcdonald, emphasized that “This is an important ruling that confirms the authority of the CFTC to investigate and combat fraud in the virtual currency markets.”
In the My Big Coin Pay Inc. case, the defendants argued that MBC is not a commodity because it “does not have future contracts or other derivatives trading on it.” However, the judge disagreed and ruled that it is a commodity and the CFTC has the authority to pursue fraud charges against the coin issuer and its founder.
The CFTC vs. Mcdonnell Case
In August, there was another court case that recognizes
