Bitcoin is Officially a Commodity in the U.S.

Bitcoin and other cryptocurrencies have been officially deemed a commodity by the Commodity Futures Trading Commission on September 17.

The official CFTC press release reads:

“In this order, the CFTC for the first time finds that Bitcoin and other virtual currencies are properly defined as commodities.”  

Now digital currencies such as bitcoin are in the same category as gold or oil in the U.S. This new authoritative policy gives the agency oversight with businesses operating with the virtual money and the means to regulate it.

CFTC director of Enforcement Aitan Goelman:

“While there is a lot of excitement surrounding bitcoin and other virtual currencies, innovation does not excuse those acting in this space from following the same rules applicable to all participants in the commodity derivatives markets.”

CFTC director of Enforcement Aitan Goelman

The agency also issued an order against Coinflip to cease and desist operations until the business is compliant, according to the CFTC press release. Coinflip was operating an online platform known as Derivabit, offering bitcoin derivatives to its clientele. The startup offered opportunities to purchase bitcoin option contracts, but were not compliant with CFTC regulations.

However, the founder of

Read more ... source: Cointelegraph