Senior United States District Judge Jack D. Weinstein of the New York Eastern District Court ruled on March 6th that virtual currencies, such as Bitcoin, are commodities, and that the Commodity Futures Trading Commission (CFTC) has authority along with other state and federal administrative agencies and civil and criminal courts over dealings in virtual currency.
The court granted a preliminary injunction against Patrick K. McDonnell and CabbageTech, Corp. d/b/a Coin Drop Markets (CDM), finding that the CFTC made a preliminary prima facie showing that the defendants committed fraud by misappropriating investors funds and misrepresentations through false trading advice and promised future profits.
According to attorney Adam Bergman, a contributor to Forbes, the CFTC has claimed that cryptocurrencies are commodities since 2015 but this is the first time a federal judge has confirmed this position, and that this decision could have a significant impact on the Bitcoin IRA Industry.
See Commodity Futures Trading Commission v. McDonnell et al
Cryptocurrencies Are Commodities, Says Federal Judge
Federal Judge Opens the Door to CFTC to Regulate Virtual Currency
Photo Credit: r.classen /Shutterstock