On Wednesday, U.S. District Court Judge Rya Zobel in Boston sided with the CFTC and ruled that My Big Coin (MBC) is a commodity. Reuters reported that, according to the judge:
In the case’s Memorandum of Decision filed on Wednesday, Zobel explained that the Commodity Exchange Act “defines ‘commodity’ generally and categorically, ‘not by type, grade, quality, brand, producer, manufacturer, or form’,” elaborating:
The document also references three other cases involving cryptocurrencies. In the case of CFTC v. Mcdonnell, “Virtual currencies can be regulated by CFTC as a commodity.” Virtual currencies are also “properly defined as commodities” in the Bfxna Inc. d/b/a Bitfinex case and the Coinflip case.
However, its jurisdiction over cryptocurrencies was challenged in June, as news.Bitcoin.com previously reported. Crater’s lawyer Katherine Cooper argued that MBC “does not have future contracts or other derivatives trading on it, it is not a commodity.” She moved to dismiss the case, claiming that the CFTC had no authority because MBC is neither a tangible good nor a service on which future contracts are being traded.
However, Zobel denied the motion on Wednesday, thereby allowing the CFTC to pursue fraud allegations against the defendants.
In response to the ruling, Cooper wrote in an email to Reuters:
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