U.S federal Judge has ruled My Big Coin to be a Commodity. This has now permitted Commodity Futures Trading Commission (CFTC) to pursue fraud charges involving the cryptocurrency.
This case could not move forward since, until the derivatives watchdog’s jurisdiction has been established.
However, U.S. District Court Judge Rya Zobel in Boston, on Wednesday, has ruled My Big Coin (MBC) as commodity. The Judge said:
“Virtual currencies meet the definition of a commodity and fall within the jurisdiction of the U.S. derivatives regulator, allowing the agency to pursue fraud allegations against My Big Coin Pay Inc.”
In the case’s Memorandum of Decision filed on Wednesday, Zobel explained that the Commodity Exchange Act “defines ‘commodity’ generally and categorically, ‘not by type, grade, quality, brand, producer, manufacturer, or form’,” elaborating:
“The amended complaint [by the CFTC] alleges that My Big Coin is a virtual currency and it is undisputed that there is futures trading in virtual currencies (specifically involving bitcoin). That is sufficient, especially at the pleading stage, for plaintiff to allege that My Big Coin is a ‘commodity’ under the Act.”
Before now, CFTC jurisdiction over cryptocurrencies was challenged in June. MBC lawyer claimed that the CFTC had no authority because MBC is neither a tangible good nor a service on which future contracts are being traded.
However with this new ruling on Wednesday, CFTC has been cleared to continue with the charges against My BigCoin.
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