CFTC Commissioner: We have authority to take action against bitcoin price manipulation

The Commissioner for the US Commodity Futures Trading Commission (CFTC), Mark P. Wetjen, has indicated that his agency has authority to take action against Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term price manipulation, saying the CFTC's definition of a commodity is very broad. His comments were made during a panel discussion at a seminar on digital currency organized by Bloomberg in New York:

"It has not been tested, but I do believe we have the authority because if you think of any reasonable reading of our statute, bitcoin classifies as a commodity. This gives us the authority to bring enforcement against any type of manipulation."

The panel was also attended by Jennifer Shasky Calvery, director of FinCEN, who praised Ben Lawsky's BitLicense initiative. Also present was former Securities and Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term Commissioner Arthur Levitt, who recently joined BitPay and Vaurum as advisor.

The warning comes during a time of heightened concern over price manipulation in capital markets. Regulators have fined banks a total of $4.3 billion to date as part of the recent investigation into FX rate rigging. $1.4 billion was levied by the CFTC.

Bitcoin trading is currently unregulated, so it is not impossible that price manipulation already takes place. But enforcement may be difficult- the CFTC is likely to encounter challenges in gaining exchange cooperation and proving misconduct- whose definition may be open to interpretation, especially in a volatile bitcoin market. In addition, customers trading on exchanges not dealing in fiat at all don't have to identify themselves, making enforcement on these venues practically impossible.

Last month, the CFTC tapped industry experts as part of exploring bitcoins as an asset class.