Today’s Solutions: April 24, 2024

It was the little currency that could, and now it really can. Despite being an effectively made up currency that was once used almost exclusively on the Web, the bitcoin is inching ever closer to legitimacy. Late last week, the U.S. Commodity Futures Trading Commission (CFTC) took the virtual currency further into official recognition than ever before, defining bitcoin and other digital currencies as commodities. “While there is a lot of excitement surrounding bitcoin and other virtual currencies, innovation does not excuse those acting in this space from following the same rules applicable to all participants in the commodity derivatives markets,” said CFTC director of enforcement Aitan Goelman. So even though the ruling came about as a slap on the wrist for the currency, it actually may be a good thing for bitcoin users. In a press release, the CFTC explained it had “issued an Order filing and simultaneously settling charges … Coinflip and its chief executive officer Francisco Riordan for conducting activity related to commodity options transactions without complying with the Commodity Exchange Act (CEA) and CFTC Regulations.” The landmark decision, the Commission said, marks “the first time that bitcoin and other virtual currencies are properly defined as commodities.” Related: Police arrest boss of failed Mt. Gox Bitcoin exchange Since the controversial debut of the bitcoin, whose rather sullied past includes its usage in black markets and online drug trades, the CFTC has weighed the pros and cons of exercising jurisdiction over such cryptocurrency. Simultaneously, businesses and markets have debated whether or not bitcoins should be viewed as commodities, but with this latest CFTC ruling, it seems that both of these questions have been answered. With the increased regulations that seem to inevitably stem from the decision, the agency may be able to exercise considerably more control over how, when, and where bitcoins can be used. So welcome to the big leagues, bitcoin. It may not be all it’s cracked up to be.

Print this article
More of Today's Solutions

Gamers revolutionize biomedical research via DNA analysis

In a remarkable study published in Nature Biotechnology, researchers discovered gaming's transformative potential in biomedical research. Borderlands Science, an interactive mini-game included in Borderlands ...

Read More

The ancient origins of your 600,000 year old cuppa joe

Did you realize that the beans that comprise your morning cup of coffee date back 600,000 years? Scientists have discovered the ancient origins of Coffea arabica, ...

Read More

World record broken for coldest temperature ever recorded

With our current knowledge of how temperature works there is no upper limit, this means materials can keep getting hotter and hotter to no ...

Read More

A youth-led environmental victory creates a paradigm shift in Montana’s...

A group of youth environmental activists scored a landmark legal victory in Montana, marking a critical step forward in the ongoing battle against climate ...

Read More