Bitcoin Can Be Regulated As Commodity, U.S. Judge Rule – Market Positive
Mar, 07th 13:31
Bitcoin can be regulated as commodities by the U.S. Commodity Futures Trading Commission, a federal judge ruled Tuesday.
Bitcoin was trading at $10,756.0 by 12:15 pm ET on the Bitfinex exchange, plunged 4.45% over the previous 24 hours.
U.S. District Judge Jack Weinstein in Brooklyn ruled that the CFTC had the standing to bring a fraud lawsuit against New York resident Patrick McDonnell and his company Coin Drop Markets, allowing the case to go forward.
Weinstein also entered a preliminary injunction barring McDonnell and Coin Drop Markets from engaging in commodity transactions.
McDonnell, who is representing himself, declined to comment on the decision.
The CFTC, which is tasked with regulating commodity, futures and derivatives markets, first determined that virtual currencies, also known as cryptocurrencies, are commodities in 2015.
In its lawsuit, announced in January, the CFTC said that since about January 2017, McDonnell and his company fraudulently offered customers virtual currency trading advice.
In fact, the agency said, the customers never received the advice they paid for, and that Coin Drop market was never registered with the CFTC. It said that McDonnell took down the company’s website and stopped responding to customers.
On the technical charts, BTC/USD is trading in the red zone below all the moving averages (9 day, 20 day, 50 day, 100 day and 200 day). The RSI is at 50.70 and the MACD is above the signal line.
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