Read more on this subject: Currencies
News Story Source: https://www.zerohedge.com
Nearly two-and-a-half years after the CFTC officially declared that bitcoin and cryptocurrencies more broadly would be regulated like securities, a federal judge has ruled that the agency does, in fact, have the authority to regulate the fledgling asset class, according to the same rules governing energy and metals, effectively defining cryptocurrencies as commodities.
US District Judge Jack Weinstein ruled that the CFTC had the standing to bring a fraud lawsuit against New York resident Patrick McDonnell and his company Coin Drop Markets, permitting the case to move forward. Weinstein also preemptively barred McDonnell and CDM from engaging in commodity transactions, according to coindesk.
"Virtual currencies are 'goods' exchanged in a market for a uniform quality and value. … They fall well within the common definition of 'commodity'," the judge wrote in the order on Tuesday.
In the lawsuit, the CFTC alleged that McDonnell and his company had
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