Virtual currencies are commodities according to the Federal Court
On October 3rd, 2018 the United States Federal Court found that virtual currencies are Commodities.
What does it mean that virtual currencies are Commodities?
According to James McDonald, Commodity Futures Trading Commission Director of Enforcement, “This is an important ruling that confirms the authority of the CFTC to investigate and combat fraud in the virtual currency markets.”
The CFTC first approved CME Group’s Bitcoin Futures at the beginning of December 2017 and they launched December 18th, 2017. Because of this, the new CFTC ruling stating that virtual currencies are commodities builds upon current regulations and should help keep investors safer and the market healthier.
Insight into the future of cryptocurrency regulations.
Chairman of the CFTC, Christopher Giancarlo, sat down with CNBC to talk about cryptocurrency regulations. In addition to regulations, he discusses the future of virtual currencies in the next ten years. The conversation sheds light on the current state of crypto regulations and the future of cryptocurrencies as a whole. More importantly, Giancarlo appears bullish on the future of crypto. He believes that although it’s value may not surpass the US dollar, adoption and value increase seem inevitable.
“I personally think cryptocurrencies are here to stay. I think there’s a future for them.” – Christopher Giancarlo, CFTC Chairman
With all of this said, the big question still remaining is: Will the SEC approve a Bitcoin ETF?