Bitcoin now officially a commodity, says US regulator
The Commodity Futures Trading Commission (CFTC) in the US has officially classed Bitcoin as a commodity.
In a press release on its website, the CFTS stated for the first time that “Bitcoin and other virtual currencies are properly defined as commodities”.
It comes as the commission ordered San Francisco-based Coinflip and its chief executive Francisco Riordan to cease “illegally offering Bitcoin options” and “operating a facility for trading or processing of swaps without registering”.
Bloomberg reported that by making this order, the CFTC asserted its authority to provide oversight of the trading of virtual currency futures and options, which will now be subject to regulations and legislation.
It also allows the CTFC to bring charges to those who don’t play by the rules.
The CFTC's director of enforcement Aitan Goelman said in a statement: “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.”