Sep 18, · So says the Commodity Futures Trading Commission (CFTC), which on Thursday announced it had filed and settled charges against a Bitcoin exchange for facilitating the trading of . 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 . 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 bitcoinBloomberg - Are you a robot?
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 In August , the German Finance Ministry classified it as a "unit of account", meaning it is can be used for tax and trading purposes in the country and is like "private money.
Skip Navigation. Markets Pre-Markets U. VIDEO Ex-Goldman director aims to hedge your bitcoin risk. Bitcoin futures market just changed the game. Related Tags. However, the CFTC has suggested it is not particularly interested in going down that path, and in fact there may be some limits on its ability to do so without a specific connection to commodities derivatives markets.
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.