US federal court: Bitcoin is the product

For the first time, a federal judge defined the crypto-currencies.

The US federal judge from the Eastern District of New York, Jack Weinstein, ruled on the eve that crypto-currencies should be treated as commodities.

It follows that Bitcoin and other crypto-currencies are subject to regulation by the Commodity Futures Trading Commission (CFTC).

The decision of the federal court makes some necessary clarity in the definition of the crypto currency and the associated futures and derivatives markets that were launched late last year.

The need for a clear definition emerged during the proceedings of the case of the company Coin Drop Markets (CDM), which was never registered in the CFTC, but at the same time received crypto-currencies, formally, in exchange for advising on the trade in crypto currency.

The CFTC claims that CDM customers never actually received the trade tips for which they paid. As a result, Judge Weinstein issued a preliminary injunction against the CDM at the request of the CFTC.

But, more importantly, it supported the definition of the CFTC from 2015 that crypto-currencies are commodities and that the CFTC has wide freedom in interpreting the federal law regulating such goods and may, among other things, prosecute the initiators of fraud and manipulation in the market of crypto-currencies , reports Bitcoinist.

Author: Evgenij Novožilov, Analyst Freedman Club Crypto News

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