Category Archives: CFTC

Tokenization: Opportunity and Regulation, Finding a Balance

Tokenization Tokenization limits the exposure of sensitive information and makes digital transactions more secure. Whether people realize it or not, millions of Americans already use tokenization technology on a daily basis. Recent developments in blockchain systems and decentralized finance create new uses for tokenization, raising legal questions as to how existing regulatory frameworks will apply … Continue Reading

Joint Statement on Digital Assets from CFTC, SEC and FinCEN – a Warning to the Crypto Industry regarding Anti-Money Laundering and Countering the Financing of Terrorism Obligations

By James Gatto on October 14, 2019 Posted in CFTC, FinCEN, SEC

The leaders of the U.S. Commodity Futures Trading Commission, the Financial Crimes Enforcement Network, and the U.S. Securities and Exchange Commission (the “Agencies”) issued a joint statement to remind persons engaged in activities involving digital assets of their anti-money laundering and countering the financing of terrorism (AML/CFT) obligations under the Bank Secrecy Act (BSA). This joint statement provides further … Continue Reading

CFTC Chairman Says Ether Is a Commodity

By James Gatto on October 11, 2019 Posted in Bitcoin, CFTC, Initial Coin Offerings

According to a recent report, the new chair of the CFTC, Heath Tarbert, has declared that he believes that ether is a commodity. He also anticipates ether futures trading on U.S. markets in the near future. The CFTC has previously taken the position that bitcoin also is a commodity. He further indicated that he agrees with … Continue Reading

CFTC Cryptocurrency Enforcement Receives Further Judicial Support

By William Kane on October 10, 2018 Posted in CFTC, Cryptocurrency

The Commodity Futures Trading Commission (“CFTC”) obtained an important court win and boost to its regulatory authority over Cryptocurrencies this month. A federal district court in Massachusetts recently issued a decision in CFTC v. My Big Coin Pay Inc. which affirmed the CFTC’s position that all virtual currencies are commodities and subject to CFTC jurisdiction.[1] … Continue Reading

Court Rules Cryptocurrencies Can Be Regulated By The CFTC As Commodities

By James Gatto and Andrea Cataneo on August 24, 2018 Posted in CFTC, Cryptocurrency

The regulatory landscape surrounding cryptocurrency continues to evolve. Most of the activity to date has involved regulatory enforcement actions brought by the Securities and Exchange Commission (“SEC”) and Commodity Futures Trading Commission (“CFTC”) and focused primarily on exposing fraud rather than providing guidance. Some people have questioned whether the CFTC has jurisdiction in this space. … Continue Reading

How Crypto Token Function and Transferability Could Impact Classification as a Security

By James Gatto on May 17, 2018 Posted in CFTC, CryptoAssets, Initial Coin Offerings, SEC, Virtual Currency

Much uncertainty exists throughout the world on the legality and legal classification of crypto tokens. In the United States, Ripple was sued recently for allegedly selling unregistered tokens (XRP) in a violation of U.S. securities laws. The US SEC and CFTC have held hearings and are assessing whether to classify certain tokens as securities and/or … Continue Reading

CFTC Issues Primer on Virtual Currency, Virtual Tokens and ICOs

By James Gatto on October 30, 2017 Posted in CFTC, Initial Coin Offerings, Virtual Currency

The Commodity Futures Trading Commission’s LabCFTC recently released, “A CFTC Primer on Virtual Currencies.” This primer provides an overview of virtual currencies and their potential use-cases, helps outline the CFTC’s role and oversight of virtual currencies, and cautions investors and users of the potential risks involved with virtual currencies.… Continue Reading