According to foreign media reports, a federal judge ruled on Tuesday that bitcoin and other virtual currencies can be regulated as commodities by the U.S. Commodity Futures Trading Commission.
Brooklyn District Judge Jack Weinstein ruled that the CFTC has the power to file a fraud suit against New York City resident Patrick McDonnell and his company Coin Drop Markets, Continue to advance.
Weinstein also signed a preliminary injunction banning McDonald's and Coin Drop Markets from participating in commodity trading, and McDonald declined to comment on the ruling.
The Commodity Futures Trading Commission, which oversees the commodities, futures and derivatives markets, first identified in 2015 that the virtual currency was a commodity.
On Tuesday, Weinstein expressed his support for the assertion, saying it is supported by the definition of the word 'commodity' and that the CFTC has extensive scope to explain the federal commodity regulation law.
In a lawsuit filed this January, the CFTC said that since January 2017, Macdonald and his company have begun charging their customers for promises of virtual currency trading, but in practice, after paying No advice has been received, and Coin Drop Markets has never been registered with the CFTC and the agency said MacDonald closed the site after the charge and no longer responded to customers.
Some analysts said that the regulation of virtual currency from all walks of life is still in its infancy, the US Congress has not passed any directly solve the problem of the law.The United States Commodity Futures Trading Commission and the US Securities and Exchange Commission have warned that the virtual Fraudulent activity in the currency market is a blow.