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19 Nov 2014
Commissioner claims CFTC can intervene in Bitcoin markets - CoinDesk
FXStreet (Barcelona) - The CoinDesk Analysis Team cite the Commissioner at the Commodity Futures Trading Commission's (CFTC) comments that the agency has the authority to take enforcement actions against price manipulation in bitcoin markets.
Key Quotes
“When asked if the CFTC has the authority to become intervene in such an event, he said, “It has not been tested, but I do believe we have the authority because bitcoin, by I think a very rational reading of our statute, classifies as a commodity and the definition of a commodity under the Commodity Exchange Act."”
“He added that this gives the regulating body the authority to bring enforcement on any type of manipulative activity, thereby broadening the reach of how a commodity can be defined.”
“The CFTC does not have a “special focus” on bitcoin and it is currently looking at the rule set and understanding bitcoin-related regulatory obligations, as it does with all asset classes.”
“Bitcoin has created a number of interesting challenges for the CFTC, he said, chief among them being the way it monitors exchanges or swap exchange facilities required to abide by certain surveillance obligations.”
“The agency notably approved the first regulated financial instrument tied to bitcoin in the US, when it gave the greenlight to swap execution facility TeraExchange to launch USD/BTC swaps on its platform in September.”
Key Quotes
“When asked if the CFTC has the authority to become intervene in such an event, he said, “It has not been tested, but I do believe we have the authority because bitcoin, by I think a very rational reading of our statute, classifies as a commodity and the definition of a commodity under the Commodity Exchange Act."”
“He added that this gives the regulating body the authority to bring enforcement on any type of manipulative activity, thereby broadening the reach of how a commodity can be defined.”
“The CFTC does not have a “special focus” on bitcoin and it is currently looking at the rule set and understanding bitcoin-related regulatory obligations, as it does with all asset classes.”
“Bitcoin has created a number of interesting challenges for the CFTC, he said, chief among them being the way it monitors exchanges or swap exchange facilities required to abide by certain surveillance obligations.”
“The agency notably approved the first regulated financial instrument tied to bitcoin in the US, when it gave the greenlight to swap execution facility TeraExchange to launch USD/BTC swaps on its platform in September.”