All Virtual Currencies Are Subject to CFTC Anti-Fraud Jurisdiction, Yet Another Federal Court Concludes

October 12, 2018
Cryptocurrency and Blockchain Tracker

The U.S. District Court for the District of Massachusetts has held that all virtual currencies are commodities that are subject to the Commodity Futures Trading Commission anti-fraud jurisdiction. In deciding on a motion to dismiss in favor of the CFTC in its case against My Big Coin on September 26, the court concluded that all virtual currencies are commodities regardless of whether a futures contract is traded on the specific virtual currency in question, and that the CFTC has jurisdiction to bring an enforcement case regardless of whether alleged fraud with regard to the virtual currency involved market manipulation. This decision is another victory for the CFTC — following its win earlier in 2018 on a motion to dismiss in CFTC v. McDonnell, et al. — in its efforts to police the spot cryptocurrency markets.

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