Coindesk Logo

US Mulls Regulating Bitcoin Under Rules for Commodities

US Mulls Regulating Bitcoin Under Rules for Commodities

US Mulls Regulating Bitcoin Under Rules for Commodities

The CTFC is investigating whether it has the authority to regulate digital currencies under rules for commodities, reports say.

The CTFC is investigating whether it has the authority to regulate digital currencies under rules for commodities, reports say.

The CTFC is investigating whether it has the authority to regulate digital currencies under rules for commodities, reports say.

AccessTimeIconMar 14, 2014, 3:26 PM
Updated Sep 3, 2021, 10:46 AM

Presented By Icon

Election 2024 coverage presented by

Stand with crypto

The US Commodity Futures Trading Commission (CFTC) has announced that it is investigating whether it has the authority to regulate bitcoin and other digital currencies, Reuters reports.

"We are looking into that," Mark Wetjen, the CFTC's acting chairman, said at an industry conference. "It's been initiated, there's been an internal discussion at the staff level."

The CFTC, which regulates the swaps and futures market, is studying whether bitcoin falls under the same rules as commodities markets, according to Wetjen. He said:

"I think people [within the CFTC] believe there's a pretty good argument that it would fit that definition."

Issues remain

"Then there's a separate question about whether or not there is some derivative contract based on, or denominated in, a virtual currency and whether that's listed on an exchange," Wetjen stated, adding that the issue remains to be looked at in detail.

Wetjen said he could not predict the outcome of the discussions or give a timeframe for regulation. The chairman has previously spoken out about cryptocurrencies. In a statement before the US Senate Committee he said:

"Virtual currency [...] does present new risk, as a firm would be interacting outside of bank payment channels, increasing the risk of hacking or fraud, among other cybersecurity issues. The CFTC is working with registrants that are seeking to accept virtual currencies to educate them about best practices."

Change of attitude

The comments follow New York State's recent decision to commence regulating bitcoin exchanges this week.

Referencing the collapse of Mt. Gox and other exchanges, New York’s Superintendent of Financial Services, Benjamin M. Lawsky, announced that the state is accepting applications for digital currency exchanges, with such submissions representing a formal commitment to the regulatory process.

Lawsky said that these businesses will be regulated under new New York regulation, anticipated to be in place by the middle of 2014.

Wetjen's comments seem to indicate that regulation is now very much on the horizon across the US as a whole, which will come as a relief to many bitcoin business that had complained of a lack of regulations to abide by.

US law image via Shutterstock

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information have been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. CoinDesk has adopted a set of principles aimed at ensuring the integrity, editorial independence and freedom from bias of its publications. CoinDesk is part of the Bullish group, which owns and invests in digital asset businesses and digital assets. CoinDesk employees, including journalists, may receive Bullish group equity-based compensation. Bullish was incubated by technology investor Block.one.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.