The Fourth Court Case Recognizes Cryptos as Commodities

The Fourth Court Case Recognizes Cryptos as Commodities

Another court case involving CFTC —the American Commodity Futures Trading Commission — implies that cyber-coins are trade goods. Therefore, their issuers are subject to the derivative’s watchdog prosecution regarding scam and manipulation. 

In these latter days, a federal judge decided that a token is a commodity, and in her ruling, the official cited three other virtual money-related cases where identical conclusions were reached. 

US Regulation Over Cyber Money Settling? 

Last week, the Federal Judge Rya Zobel decided that the American futures and option markets regulator has the authority to institute legal proceedings against fraud and unfair or dishonest control of people at one’s advantage in the industry of virtual coins. The information regarding the ruling was confirmed by CFTC Chairman Chris Giancarlo this week, news.BTC.com report.

The latter case regards My Big Coin Pay Inc. as well as an MBC (my big coin) token. The judge proceeded the ruling, also citing other CFTC and cyber coins-related cases, where the cyber-coins are recognized as trade goods.  

MBC Case

In the case of the above-mentioned establishment, the defendants claimed that their token was not a commodity. To prove their argument, they said it did not have future contracts or derivatives trading on it. But the judge made a different decision.

Other Three Cases

The other three cases, where digital tokens are considered to be trade goods, are:

  • Mcdonnell Case
  • The Bitfinex Case
  • The Coinflip Case
  • All of them were mentioned by the court official Zobel, as she said according to them digital coins can be viewed and handled by the futures watchdog as a trade good. 

    All these cases were judged at the different time. In Mcdonnell Case encrypted tokens were recognized as trade goods this year August. In the case of Bitfinex, the ruling took place in June 2016, whereas Coinflip was considered in September 2015. In the latter, it was bitcoin which were first considered as commodities. 

    Image Source: Flickr