Type: Client Alert
On September 27, we discussed the latest CFTC enforcement action involving cryptocurrencies in a client alert available here. In that case, the CFTC brought an enforcement action against a group of defendants for fraudulently soliciting investments for a pooled fund that traded the digital asset bitcoin. Interestingly, the pooled fund did not trade derivative instruments (e.g., futures, options, swaps). The CFTC nevertheless asserted its general jurisdiction over commodities under the Commodity Exchange Act. The CFTC’s view is that any digital asset-related transaction or solicitation that involves fraud or manipulation is within the CFTC’s territory.