Sep 18, · Bitcoin officially becomes a commodity Bitcoin will now be classed as a commodity in the U.S. along with gold and oil, according to the Commodity Futures Trading Commission . Access to CFTC's public reports and contact information for the Chief Data Officer of the agency. A breakdown of each Tuesday's open interest for markets; in which 20 or more traders hold positions equal to or above the reporting levels established by the CFTC. Tag: U.S. Commodity Futures Trading Commission (CFTC) Bitmex Fast-Tracks KYC Program as Regulators Tighten Screws on Anti-Money Laundering Rules Oct 22,
U.s. commodity futures trading commission bitcoinBitcoin as a Commodity: What the CFTC’s Ruling Means
This might mean a nervous couple of months for other unregistered bitcoin derivatives firms in the U. Aitan Goelman, the CFTC's director of enforcement, added that "while there is a lot of excitement surrounding bitcoin Bitcoin is a virtual currency that allows users to exchange online credits for goods and services. While there is no central bank that issues them, bitcoins can be created online by using a computer to complete difficult tasks, a process known as mining.
As well as bitcoin exchanges and wallet services, a small but growing sector of derivatives firms selling products based on the digital currency have also sprung up in recent years. Crypto Facilities was set up in the U. The platform pitches itself as a broker which specializes in bitcoin derivatives, and trades financial products like options and futures which are directly linked to the price of the cryptocurrency.
Thus, it allows users to "go long" and bet that the price of bitcoin will rise, or "go short" and bet the price will fall. Technology enthusiasts, regulators and economists have been pondering how to pigeon hole bitcoin since its emergence in This leaves the primary impact of the enforcement action itself to be felt by companies like Coinflip, which offer bitcoin derivatives to users in the US.
Using derivatives to stabilize value is awkward on a one-off basis, but commercialized and regularized through smart contracts, it gives holders the experience of owning bitcoins with a stable price, even when the market price for bitcoins continues to fluctuate. Recall, though, that while cooperation with an investigation is sometimes a good strategy, willy-nilly and lawyer-less discussion with government investigators almost never is. Still, this enforcement action suggests that, without something more flagrant, criminal punishment for these types of offenses is not especially likely.
Bitcoin is now officially a commodity. Even small unregistered sellers of bitcoin derivatives are wise to make plans to deal with potential enforcement actions. Washington DC image via Shutterstock. This is not legal advice, and is not intended to establish an attorney-client relationship. You can reach Jared at jmarx hwglaw. Before getting to that, though, keep in mind the importance of bitcoin derivatives themselves.
Likewise, violation of any CFTC rule is, somewhat amazingly, punishable with jail time. Washington DC image via Shutterstock This is not legal advice, and is not intended to establish an attorney-client relationship. Read more about