A US court has formally rejected an attempt to stop the raw materials regulatory authority of the country pursuing an alleged cryptocurrency swindler, stating that these assets are commodities.
CFTC can legislate with Crypto
In a press release dated 3 October, senior judge Rya W. Zobel of the US District Court for the District of Massachusetts ruled in favor of the Commodity Futures Trading Commission (CFTC) in a case involving the now-forgotten cryptocurrency My Big Coin.
Part of an ongoing legal battle, the attorneys of My Big Coin attempted to stop the court proceedings for deceptive claims about its nature by claiming that the CFTC had no jurisdiction over virtual currency.
The court is not in agreement, paving the way for the CFTC to bring its case against the regime, which has operated since 2014.
By extension, the statement announces, the CFTC considers all cryptocurrencies as raw materials, extending the requests at the beginning of this year by another regulator of the Securities and Exchange Commission (SEC) which concerns only Bitcoin and Ethereum .
An important ruling & # 39;
"This is an important ruling confirming the CFTC's authority to investigate and combat fraud in virtual currency markets," commented CFTC Executive Director James McDonald.
This ruling … recognizes the broad definition of commodity under the (Commodity Exchange Act), and also that the CFTC has the power to prosecute fraud in relation to commodities, including virtual currencies.
The news supported commentators of cryptocurrency, which on social media have seen the step towards a formal definition of all assets as "bullish".
As Bitcoinist This week, CFTC president J. Christopher Giancarlo also gave strength to the possibility of favorable regulation of cryptocurrents in progress, saying that Bitcoin and others could "solve" some of the problems associated with legal tender.
"Personally I think cryptocurrencies are here to stay, I think there's a future for them," he said CNBC.
He added that the agency, along with the SEC, will continue to be "very strong and strong against fraud manipulation".
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