One of the US rulers has finally explained what cyber money is. Neither are they fiat, nor assets, following the decision of the American, New York region, judge Jack Weinstein. He supported the interpretation of cyber assets, given by the US Commodity Futures Trading Commission earlier. So, BTC and its brethren are nothing else but commodities in the eyes of the American justice.
But How Do These Two Events Correlate? Prehistory
Back, in 2015, CFTC defined digital coins as goods. That was a conclusion, which led the body to trace crypto business operator Patrick Kerry McDonnell lately. This also related to his business called CabbageTech. The last one, by the way, is considered by the agency as a deceiving investor.
At the beginning of 2018, CFTC filed diverse cases, and a particular one, the agency accused McDonnell as well as his firm of allegedly skulking with their “clients’” virtual assets.
Then, CFTC said that McDonnell called himself a cyber coins finance specialist. It was pointed out that he “could” give pieces of trading advice which “would” lead to hugely significant returns on the venture.
Notwithstanding the above, as it is stated in the filing after CabbageTech’s clients sent their funds as well as cryptos, McDonnell dissipated them.
So the question was whether the US agency could go against the self-titled crypto expert. And the explanation of digital coins was crucial.
Backing up the determination of CFTC, judge Weinstein recently ordered that cyber assets are commodities. In particular, he stated that cyber coins could be controlled by the body as goods.
Also, in the paper it was affirmed that in this case, the judge had to rule whether:
- the CFTC had the power to run virtual assets as a commodity in the deficiency of federal scope commands;
- the law allowed the CFTC to spread its control over deceit that does not comprise the disposal of and so on.
The judge responded favorably to both issues. This means that now the case can be directed not in favor of McDonnell.