CFTC Chairman Says Crypto is 'Here to Stay', Federal Court Declares Virtual Currencies are Commodities

So how did the chairman recommend navigating the crypto space today? What he termed a "Two-handed approach." On one hand are regulatory authorities who can help protect investors and prevent fraud, and on the other those who would drive innovation in cryptocurrency.

A ruling announced Wednesday strengthened the CFTC's ability to prosecute cryptocurrency fraud by declaring virtual assets as commodities.

The ruling brings virtual currencies under the CFTC's jurisdiction.

The decision stems from a case in September, in which the creators of cryptocurrency My Big Coin were charged with fraud and the federal court refused to allow their motion to discuss the case.

"This is an important ruling that confirms the authority of the CFTC to investigate and combat fraud in the virtual currency markets. This rulingrecognizes the broad definition of commodity under the CEA, and also that the CFTC has the power to prosecute fraud with respect to commodities including virtual currencies. We will continue to police these markets in close coordination with our sister agencies."

CFTC announces that federal court finds that virtual currencies are commodities: https://t.

The court agreed in its ruling with the CFTC's assertion that MBC is a commodity, pointing to the fact that BTC futures are currently being treated as commodities and under CFTC jurisdiction.

The court moved to accept the broad definition of commodities as goods, articles, and services "In which contracts for future delivery are presently or in the future dealt in."

The court also rejected the defendant's assertion that the CFTC could only prosecute them based on market manipulation, stating that the broad interpretation of "Commodities" included any kind of fraud, whether or not market manipulation is present.

The CFTC alleges the defendants have been scamming people since 2014, convincing them to buy into what they sold as fully functional crypto but was a sham.