The U.S. Commodity Futures Trading Commission (CFTC) announced yesterday that the Global Markets Advisory Committee (GMAC) will hold a public discussion about the regulator’s jurisdiction concerning derivatives contracts related to the digital currency Bitcoin on October 9th.
It is still unclear how is the CFTC going to address any regulatory issues related to crypto currencies, as the question on whether Bitcoin is a currency or a commodity according to official government regulations has still not been conclusively addressed.
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While a conclusive outcome from this debate is highly unlikely, there is some merit to get some more clarity about the regulatory intentions towards the digital currency and the industry gets its first chance to hear about CFTC’s position towards the market.
Since March, the regulator has been in discussions on whether the crypto currency is meeting the commodity definition under CFTC’s rules.
Regulated trading with derivatives contracts could drastically reduce the volatility of the BTC/USD pair.