Digital Currencies as Commodities: Trying to Regulate the Unknown
Governments want to regulate digital or virtual currencies such as Bitcoin. US regulators have found their way to do this by classifying digital currencies as commodities. But it is not fully clear yet what impact such currencies will have in the financial markets. Treating such currencies as digital commodities may be such a way so that governments are able to control the way in which they are used and proliferate.
CNBC reports "Bitcoin will now be classed as a commodity in the U.S. along with gold and oil, according to the Commodity Futures Trading Commission (CFTC), which has started to clamp down on unregistered firms that trade derivatives of the cryptocurrency. The CFTC stated Thursday that it had ordered bitcoin options trading platform Coinflip, and its CEO Francisco Riordan, to cease trading due to it not registering and complying with its regulations. It added that it had also filed, and simultaneously settled, charges against the San Francisco-based firm. This might mean a nervous couple of months for other unregistered bitcoin derivatives firms in the U.S. but also signaled that the cryptocurrency will now come under the CFTC's scope."