Nearly two-and-a-half years after the CFTC officially declared that bitcoin and cryptocurrencies more broadly would be regulated like securities, a federal judge has ruled that the agency does, in fact, have the authority to regulate the fledgling asset class, according to the same rules governing energy and metals, effectively defining cryptocurrencies as commodities.
US District Judge Jack Weinstein ruled that the CFTC had the standing to bring a fraud lawsuit against New York resident Patrick McDonnell and his company Coin Drop Markets, permitting the case to move forward. Weinstein also preemptively barred McDonnell and CDM from engaging in commodity transactions, according to coindesk.
“Virtual currencies are ‘goods’ exchanged in a market for a uniform quality and value. … They fall well within the common definition of ‘commodity’,” the judge wrote in the order on Tuesday.
Continue reading Cryptocurrencies Should Be Regulated Like Commmodities, Judge Rules
via zerohedge – It’s often said in financial markets that correlation does not mean causation.On some occasions, however, denying the causation seems so outlandish to be, frankly, preposterous. As a case in point, Institutional Investor (II) discovered a newly published academic work investigating the investment returns of SEC employees. It turns out those guys are surprisingly good.
According to II, employees at the Securities and Exchange Commission may benefit from divesting companies ahead of investigations, research shows.
Employees at the U.S. Securities and Exchange Commission earn investment returns similar to the insider traders they prosecute,according to new research from Columbia University and Arizona State University.
Continue reading Insider Trading Inc: Beat The Market, Work For The SEC
A whistle-blower’s account of exposing massive fraud at UBS
Sunday, April 16, 2017, 1:14 PM
Just how bad is the ongoing fraud in the banking system? Get ready for a mind-bowing expose by a former insider at UBS.
Brad Birkenfield, author of Lucifer’s Banker: The Untold Story of How I Destroyed Swiss Bank Secrecy, recounts the efforts he uncovered by his employer to help its clients cheat the US government out of tens of $billions in taxes.
But despite his working with the government closely to expose the gigantic conspiracy between US-based tax cheats and the giant Swiss bank, UBS, the so-called Justice Department went after Mr. Birkenfeld for abetting tax evasion by one of his clients. After spending thirty months in Federal prison, he was released and three weeks later, received a whistle-blower check for $104 million, the largest such check ever from the IRS Whistle-blower Office.
Continue reading UBS Bank Whistleblower- Brad Birkenfeld: Lucifer’s Banker- Worse Than Anyone Thought Possible