The US Commodity Futures Trading Commission (CFTC) has announced that it is investigating whether it has the authority to regulate bitcoin and other digital currencies, Reuters reports.
"We are looking into that," Mark Wetjen, the CFTC's acting chairman, said at an industry conference. "It's been initiated, there's been an internal discussion at the staff level."
The CFTC, which regulates the swaps and futures market, is studying whether bitcoin falls under the same rules as commodities markets, according to Wetjen. He said:
"Then there's a separate question about whether or not there is some derivative contract based on, or denominated in, a virtual currency and whether that's listed on an exchange," Wetjen stated, adding that the issue remains to be looked at in detail.
Wetjen said he could not predict the outcome of the discussions or give a timeframe for regulation. The chairman has previously spoken out about cryptocurrencies. In a statement before the US Senate Committee he said:
Change of attitude
The comments follow New York State's recent decision to commence regulating bitcoin exchanges this week.
Lawsky said that these businesses will be regulated under new New York regulation, anticipated to be in place by the middle of 2014.
Wetjen's comments seem to indicate that regulation is now very much on the horizon across the US as a whole, which will come as a relief to many bitcoin business that had complained of a lack of regulations to abide by.
US law image via Shutterstock
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.