Tag: bitcoin regulation

Judge Rules That CFTC Has Authority To Regulate Bitcoin

By Nick Hamilton | United States

There has been a lot of discussions lately about regulating Bitcoin, and whether the United States should move towards it or not. On Tuesday, Federal Judge Jack Weinstein agreed that the CFTC, or the US Commodity Futures Trading Commission, has the right to regulate this up and coming cryptocurrency.

Weinstein asserted that Bitcoin is a commodity, meaning it can be regulated by the CTFC. This came on the brink of a lawsuit between the CFTC and CabbageTech, which is run by Patrick Kerry McDonnell, and asserted that the CFTC certainly has a good case against them for fraud.

The “fraud,” according to the agency, was based on McDonnell asserting himself as a crypto expert to get customers. However, he was misappropriating funds. The CFTC says that CabbageTech has misled their customers since January of 2017.

Weinstein stated, “The CFTC Complaint further alleges that to conceal their scheme, soon after obtaining customer funds, Defendants removed the website and social media materials from the Internet and ceased communicating with [Coin Drop Markets] Customers, who lost most if not all of their invested funds due to Defendants’ fraud and misappropriation.” (Quote from Fortune)

In this lawsuit, McDonnell is representing himself. According to a report by CNBC, he declined to comment on this matter.

This lawsuit looks to be a landmark case for the future of Bitcoin, and the push to regulate it, which even Republicans are getting behind now. BTC went from being around $11.4K on Tuesday to just under $9.9K Thursday morning, a $1.5K drop in under 48 hours. This case looks to be an interesting one, and certainly, one that will be kept up with.


The White House Is Nowhere Close To Regulating Bitcoin

By Nick Hamilton | United States

We’re starting to see countries like the UK, France, and India regulate cryptocurrency, however, in the United States, we don’t have the same situation.

At the Munich Security Conference in Munich, Germany on Friday, White House cybersecurity coordinator Rob Joyce asserted that the United States was far from regulations on Bitcoin. He asserted that cybersecurity officials still evaluating the good and bad of Bitcoin.

One main thing that Joyce pointed out, which is echoing many governmental leaders’ views on Bitcoin, is its use in criminal activity, as Bitcoin transactions are anonymous.

“We are worried. There are benefits to the bitcoin concept, such as digital cash and digital currencies. But at the same time, if you look at the way bitcoin works after there is a criminal act that takes place, you can’t rewind the clock and take back that currency.”

Joyce was in the NSA for 27 years before President Trump hired him to this position in March of 2017.

Over 450 policymakers, heads of state, and senior officials were in attendance for this event. Currently, business leaders are torn about the future of Bitcoin, and what it entails, as it isn’t the safest method of transaction. Not to mention, it has shown the last couple of weeks to be on the unstable side. However, it doesn’t appear that the United States is in any position to create regulations on bitcoin.

Now, what does that in itself entail? What would that do for Bitcoin? Some cryptocurrency owners are opposed to regulation, but would it necessarily be a horrible thing?

Here’s the thing: if this currency was regulated, people may feel safer in investing in cryptocurrencies like Bitcoin. We’ll have to see how this regulation does in other countries, and if the future of cryptocurrency is a safe one and a prosperous one. However, Mr. Joyce has made clear that the United States is far from regulating these currencies.

Image from Coin Desk.