A federal federal judge has ruled that CFTC can regulate cryptobultures in the same way they regulate futures trading. The US District Judge, responsible for the decision, is Jack Weinstein. He argues that the CFTC has the legitimate power to take action against Patrick McDonnell and his Coin Drop Markets, which has sold fraudulent investment advice, selling something that does not exist.
The decision was taken on March 6, after a hearing in which Weinstein said that without a CFTC court verdict and reaction, the accused would continue to violate the CEA (Commodity Exchange Act). The court's ruling states that the defendants have committed fraud through the misuse of investors' funds and the misappropriation of investment advice.
This case may be a turning point of the crypto-market, and lay the foundations for regulations on cryptobultures. The most logical outcome of the situation is the CFTC and other regulatory authorities to require the licensing of such companies.
We have a similar example in New York, where regulators require BitLicense licensing from Crypt.
One thing is clear, the fight against crypto-fraud is becoming more and more tangible, but Patrick McDonnell is not the first scammer and will not be the last.
Source: Finance Magnates
Jr Trader Petar Milanov
Finance Magnates: US Federal Judge: 'Cryptocurrencies are Commodities'
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