The US District Judge supported the decision of the Commodity Futures Trading Commission (CFTC) to define cryptocurrencies as commodities.
Previously, CTFC filed a lawsuit against CabbageTech owner Patrick Kerry McDonnell. The entrepreneur created the Coin Drop Markets service and offered clients consultations on cryptocurrency trading, but in reality, users did not receive any advice after they paid money.
The court examined whether the CFTC has been legally empowered to regulate cryptocurrency as an exchange commodity in the absence of relevant federal laws, and whether the law allows, as the document says, ‘to exercise CFTC jurisdiction over fraud that is not directly related to the sale of futures and derivative contracts ‘.
In both cases, Judge Weinstein answered in the affirmative, and this means that an accusation can be brought against the defendant.