Topic: 2013-05-09 TheGenesisBlock.com - US Regulator’s Confusion Around Bitcoin Is Exac (Read 6731 times)

I'll tell you what this actually is, it is of course politicians being as stupid as ever, but it is also that they'll be desperate to not officially acknowledge Bitcoin as a currency, if they do, then that means there will be all sorts of different rules involved with Bitcoin and they may even have to declare it as a currency entirely seperate from the state.

You can bet that the central banks won't be having that because it would be a direct threat to them.

LMAO. On-line gaming tokens. Full retard police state.

Which government agency has responsibility for regulating options and calendar spreads on air guitars?
Is it the cool long-haired regulator?

You know to any reasonable outside observer this actually looks really, really bad for govt. inc. If they harboured any doubts or inklings that maybe the gubmint was getting a little too over-bearing now they are they thinking ...

"WTF, the CFTC wants to regulate on-line gaming tokens?!" "Have they lost their minds and gone full retard police state on us?"

"What about MF Global and Bernie Madoff and the bank bailouts, who was regulating them?!"

The CFTC regulates derivatives contracts and, under Dodd-Frank financial reform, has sweeping authority to oversee retail foreign exchange dealers.

One person familiar with the discussions said Bitcoin would not become subject to CFTC jurisdiction unless it becomes the basis for a derivatives contract. The use of Bitcoin to pay for ordinary goods is outside the commission’s bailiwick.
Leveraged Bitcoin transactions that settled in more than two days – so-called “rolling spot” transactions – would also fall under CFTC jurisdiction, the person said.

(Schrodinger’s Cat)²

Now all we need is for the SEC to define Bitcoin as a security and we'll have a regulatory trifecta.

[CFTC's Bart Chilton] stated on bloomberg.tv: 'In essence, we’re talking about a type of shadow currency, and there is more than a colorable argument to be made that derivative products relating to Bitcoin falls squarely in our jurisdiction.'
[...]
Bitcoin clearly does not derive its value from the future purchase of an underlying asset. Therefore, if the CFTC plans to regulate bitcoin, they must consider bitcoin either a commodity or forex, with the intent to regulate bitcoin forex or bitcoin derivatives.
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Since bitcoin is not the currency of a foreign government, but rather the first global currency, it would seem their power to regulate bitcoin as forex does not apply.
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Bitcoin being declared a commodity would create an interesting contrast with fincen’s March guidance requiring bitcoin exchanges to be registered as Money Service Businesses (MSB).
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So it seems the US Government has no idea how to classify bitcoin: is it a currency or a commodity? Any CFTC ruling would likely declare bitcoin a commodity and put it in a Schrodinger’s Cat state – it would coexist as both a currency and a commodity.
[...]
FinCEN was forced to create a new definition for virtual currencies, and we expect the CFTC to do the same. However, those living in fear of what the CFTC’s decision may hold should have solace in the fact that any regulations will be largely unenforceable anyway.