Putting Bitcoin in to an Economic Framework has not been that easy to any State or country. Different legal definitions for the disruptive innovation that is cryptocurrencies can have profound ramifications for the instruments in each jurisdiction such as what agencies will regulate them, under what laws, and how users will be taxed, if at all. A new ruling by a US federal court now tilts the scales towards viewing them as commodities, but that is not likely to be the final word as American lawmakers have yet to have their say.
A U.S. District Judge Jack Weinstein ruled on Tuesday, that Bitcoin and others like CryptoCurrencies should be regulated by the U.S. Commodity Futures Trading Commission (CFTC). The federal judge thus upheld the CFTC’s position from 2015 that cryptocurrencies are commodities, saying it was supported by the plain meaning of the word “commodity” and that the agency had “broad leeway to interpret the law” regulating commodities (The Commodity Exchange Act of 1936).
However, this ruling came about because the court had to decide whether the CFTC was able to prosecute an alleged fraudster who promised clients cryptocurrency trading advice but never delivered (Patrick McDonnell and his company Coin Drop Markets). By allowing the agency to continue with the case, the judge set a precedent for all other legal cases where defense lawyers might have argued that the CFTC has no standing because bitcoin is not a commodity.
To you, is bitcoin a commodity? Which government agencies do you think should or is qualified to control CryptoCurrencies? Drop your comments below and subscribe to our newsletter for more latest News.