Cryptocurrencies Subject To Regulation As Commodities, Says Judge In US

RT – March 7. 2018: The same rules govern energy, metals & virtual currencies like bitcoin, a federal judge has reportedly ruled. The US Commodity Futures Trading Commission (CFTC) will regulate cryptocurrency, Reuters reported.

US District Judge Jack Weinstein has ruled the CFTC had the standing to bring a fraud lawsuit against New York resident Patrick McDonnell and his company Coin Drop Markets (CDM), allowing the case to go forward. In the lawsuit, the CFTC said that since about January 2017, McDonnell and his company had fraudulently offered customers virtual currency trading advice.

The United States Congress hasn’t yet passed any laws addressing the regulation of virtual currencies directly. The CFTC and Securities and Exchange Commission (SEC) have already warned it is necessary to combat fraud in the cryptocurrency markets.

In its annual filing with the SEC, Bank of America said last month (February) cryptocurrencies pose a competitive threat to its business. The bank has moved ahead to restrict its customers’ use of bitcoin and other virtual currencies. While Citigroup and JPMorgan Chase have taken steps to ban purchases of cryptocurrency on their credit cards.

Other articles:
Bitcoin – The Grand Deception
Russia Discussing Crypto Currency Regulation

END