Be aware of all developments relating to cryptocurrency, track trends and rates ups and downs, learn all about Mining and complexities of the Bitcoin system and be sure you will be aware of the most urgent and important news of World Mining company.
"The World - that is, information that grows over time."
"He who owns the information, owns the world."

US Regulator’s Power Over Crypto Challenged in Court

US Regulator's Power Over Crypto Challenged in CourtThe US Commodity Futures Trading Commission (CFTC) is being challenged in court over its oversight of cryptocurrencies. The defendants argue that their tokens are not commodities, with no futures contracts, which the CFTC regulates. The outcome of this case could affect the Commission’s ability to police all future crypto frauds. Also read: Yahoo! Japan Confirms Entrance Into the Crypto Space

Challenging the CFTC’s Power

US Regulator's Power Over Crypto Challenged in CourtThe power of the CFTC over cryptocurrencies has reportedly been challenged in court. The case involving My Big Coin could determine whether the derivatives regulator “has the authority to combat fraud associated with cryptocurrencies,” Reuters reported on Wednesday. Katherine Cooper, lawyer for the defense, explained that the CFTC should not have jurisdiction in this case, stating that “our argument boils down to the fact that because My Big Coin does not have future contracts or other derivatives trading on it, it is not a commodity,” and does not fall under the Commodity Exchange Act according to which the CFTC is the regulator. The news outlet elaborated: Lawyers watching the case say a ruling against the CFTC could affect its ability to police virtual currency frauds as the only one on which futures contracts are traded in the United States is bitcoin. Gregory Kaufman, a lawyer with Eversheds Sutherland, believes that the outcome of this case “would have a chilling effect on the CFTC’s application of its powers in this area.” Other than My Big Coin, the Commission has announced eight cryptocurrency-related cases to date, the publication noted, adding that U.S. District Judge Rya Zobel in Boston is set to hear the My Big Coin case on Thursday.

About My Big Coin Case

US Regulator's Power Over Crypto Challenged in CourtThe case began in January when the CFTC sued Randall Crater and the company he founded called My Big Coin Pay Inc. The news outlet described, “The CFTC says the defendants misappropriated $6 million from 28 customers they lured by naming their virtual currency [My Big Coin] to sound like bitcoin and further claiming it was backed by gold.” The Commission was given the authority over crypto in March when U.S. District Judge Jack Weinstein in Brooklyn “ruled for the first time that virtual currencies can be regulated by the agency as a commodity,” the publication conveyed. However, Crater’s lawyers argued: The CFTC has no authority over the virtual currency because it [My Big Coin] is not a commodity like wheat or cotton or a service that is traded using futures contracts, the typical focus of the agency’s enforcement regime. Nonetheless, Neal Kumar, a lawyer at Willkie Farr & Gallagher, was quoted explaining that “Crater may still lose because the Commodity Exchange Act defines services as commodities not just when they currently have futures contracts associated with them but in the future could.” Do you think the CFTC should have jurisdiction over all cryptocurrencies? Let us know in the comments section below.
Images courtesy of Shutterstock and CFTC.
Need to calculate your bitcoin holdings? Check our tools section. The post US Regulator’s Power Over Crypto Challenged in Court appeared first on Bitcoin News.

US Secret Service Asks Congress for Help to Prevent Illicit Use of Privacy Coins
US Secret Service Asks Congress for Help to Prevent Illicit Use of Privacy Coins

The US Secret Service is worried about the illicit use of cryptocurrencies. A high-ranking official of the agency has urged Congress to consider additional legislation to address anonymity-enhanced cryptocurrencies and services intended to obscure transactions on blockchains such as tumblers or mixe...

23.06.2018, 16:50Read more
Wendy McElroy: Crypto as Class Warfare
Wendy McElroy: Crypto as Class Warfare

The Satoshi Revolution: A Revolution of Rising Expectations Section 4: State Versus Society Chapter 9, Part 1 Crypto as Class Warfare “Antagonism between the classes will be removed. I do not envisage a dead and artificial level among the people. There will be a variety among them as there is among ...

23.06.2018, 15:00Read more
Supremes Uphold Cell Privacy, Hope for Ross Ulbricht
Supremes Uphold Cell Privacy, Hope for Ross Ulbricht

The United States Supreme Court, in a 5-to-4 decision for the case Carpenter v. United States, ruled cops cannot access cell phone tracking information without a warrant. Around the country, privacy advocates and the mainstream media are hailing it as a “landmark” case. We’re told it has implication...

23.06.2018, 13:40Read more
Video Webinars