Recently today on Monday, the CFTC [Commodity Futures Trading Commission] has filed a legal lawsuit against Laino Group for soliciting United States investors to trade futures on commodities including Ethereum [ETH], Litecoin [LTC], and Bitcoin [BTC] without registering with the commission.
According to the CFTC’s case filed, the St. Vincent-registered Laino Group, operating as PaxForex, used a network of United States-based affiliates to solicit American retail investors. In doing so, Laino Group violated the commodities exchange Act.
The CFTC didn’t specify the extent of Laino Group’s activities. The commission’s request for relief indeed suggests that they themselves do not know what proportion the trading platform took in without registering. Additionally, to call for the full return of all funds accumulated, the CFTC’s complaint asks:
“An order directing that Defendant, and any successor thereof, make an accounting to the Court of all of its assets & liabilities, alongside all funds it received from as well as paid to the investors.”
Moreover, the noteworthy here is that the jurisdictional boundary is being established. The CFTC has consistently called Bitcoin a commodity in recent years. The use of Ether and Litecoin within a list with Bitcoin also like the traditional commodities like gold and silver within an action from the CFTC suggests that the Commission is treating these others as commodities also, that CFTC Chairman Heath Tarbert revealed earlier in last year.
However, one question still remains unclear for now as which cryptocurrencies should be under CFTC jurisdiction came up within a pair of bills introduced to the House of Representatives earlier within last week.