The CFTC is trying to have an unregistered international forum to refund U.S. investors in its cryptocurrency futures, indicating widening jurisdictions.
On Monday, the Commodity Futures Trading Commission pressed suit against the Laino Company for encouraging U.S. customers to trade in commodity futures, including Ether, Litecoin and Bitcoin, without registering with the Regulator.
In reaction to CFTC ‘s lawsuit, the St. Vincent-registered Laino Group, acting as PaxForex, was using a network of U.S.-based affiliates to attract American institutional investors. By doing so, the Laino Party breached the Commodity Exchange Act.
The CFTC did not determine the scope of the operations of the Laino Party. Indeed, the Commission’s appeal for relief indicates that they actually do not know how much the trading site took without registration. BesidesÂ calling for the full recovery of all accrued assets, the CFTC ‘s lawsuit calls for:
An order directing that Defendant, and any successor thereof, make an accounting to the Court of all of its assets and liabilities, together with all funds it received from and paid to customers.
Especially notable here is the definition of the jurisdictional boundaries. In recent years, the CFTC has repeatedly named Bitcoin an asset. The inclusion of Ether and Litecoin in the Bitcoin list as well as conventional assets such as gold and silver in the CFTC action indicates that the Commission considers these things as assets, as stated by CFTC Chairman Heath Tarbert last year.
The problem of which cryptocurrencies should be under the authority of the CFTC was posed in a set of bills submitted to the House of Representatives last week.