Second District Court Determines Virtual Currencies Are Commodities

October 2, 2018

On September 26, 2018, a federal court in the District of Massachusetts found that virtual currencies are a commodity under the Commodity Exchange Act, 7 U.S.C. § 1 et seq.

This marks the second time that a court has accepted the Commodity Futures Trading Commission’s position and upheld the agency’s authority to regulate unleveraged and unmargined spot transactions in virtual currency under the agency’s anti-fraud and manipulation enforcement authority.  Most notably, however, the reasoning behind its decision potentially expands the scope of the CFTC’s oversight of the market.

Click here, to continue reading on the Cleary FinTech Update blog.