Bitcoin and other cryptocurrencies can be considered as goods and subject to appropriate regulation by the Commodity Futures Trading Commission (CFTC). Such a ruling was made by the US district judge in Brooklyn, Jack Weinstein, who is considering CFTC’s lawsuit against CabbageTech owner Patrick Kerry McDonnell.
It should be noted that for the first time CFTC recognized crypto-currencies as a commodity in 2015. Judge Jack Weinstein confirmed this decision, saying that the CFTC has wide discretion to interpret the federal law regulating commodities.
Weinstein’s resolution says that the CFTC has the right to sue McDonnell, who, according to the agency, created the Coin Drop Markets service since January 2017 and mislead customers by offering them advice on trading cryptocurrency.
In reality, clients did not receive the advice for which they paid. Coin Drop Markets was never registered with the CFTC, and McDonnell closed the company’s website and stopped responding to customer requests. The district judge also issued a preliminary injunction against McDonnell and Coin Drop Markets to participate in commodity transactions.