If you are a Bitcoin non-believer, this may make you think twice. The U.S. Commodity Futures Trading Commission (CFTC) has declared Bitcoin and other digital currencies as commodities, making Bitcoin all the more legitimate.
But as a wise man once said “With great power, comes great responsibility”, and playing in the big leagues isn’t all fun and games. While declaring BTC a commodity the CFTC simultaneously charged Coinflip Inc. and its CEO Francisco Riordan for conducting activity related to commodity options transactions without complying with the Commodity Exchange Act and CFTC Regulations. It is clear the relatively new Bitcoin will not be cut any slack, Aitan Goelman (CFTC Director of Enforcement) said:
“While there is a lot of excitement surrounding bitcoin and other virtual currencies, innovation does not excuse those acting in the space from following the same rules applicable to all participants in the commodity derivatives markets”.
Being held to higher standards for Bitcoin companies and Startups may bring good and bad, we will have to wait and see. As for defining a hard commodity as “ones that are extracted through mining”, we can all agree that it is about time cryptocurrencies be in the game.