CFTC (The US Commodity Futures Trading Commission) has taken action against the operator of a platform offering options on Bitcoin, Coinflip, and in doing so, it ruled that it views Bitcoin as a commodity, and not as a currency. The The US Commodity Futures Trading Commission's director of enforcement, Aitan Goelman, suggested in a statement that the agency will seek to hold digital currency companies to the same standards as more traditional businesses that fall under its remit, saying that "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." Though this ruling is significant in the sense that it defines Bitcoin in the eyes of one US regulator, it is important to note that the various US regulators, of which there are many, could all take a different view of the cryptocurrency's definition, which could lead to verious types of regulation impacting Bitcoin companies in the country. This situation can be contrasted with that in the UK, where the financial regulators are all more closely aligned in policy matters, leading to more consistent regulatory approaches.
The US Commodity Futures Trading Commission (CFTC) has taken action against the operator of a platform offering options on Bitcoin, Coinflip, and in doing so, it ruled that it views Bitcoin as a commodity, and not as a currency. The CFTC's director of enforcement, Aitan Goelman, suggested in a statement that the agency will seek to hold digital currency companies to the same standards as more traditional businesses that fall under its remit, saying that "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." Though this ruling is significant in the sense that it defines Bitcoin in the eyes of one US regulator, it is important to note that the various US regulators, of which there are many, could all take a different view of the cryptocurrency's definition, which could lead to verious types of regulation impacting Bitcoin companies in the country. This situation can be contrasted with that in the UK, where the financial regulators are all more closely aligned in policy matters, leading to more consistent regulatory approaches.