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> (1) As Bitcoin has yet to be recognised/classified as a currency or security, one could argue that derivatives based on the price of a Bitcoin are more akin t
by runeks 13y ago
> (1) As Bitcoin has yet to be recognised/classified as a currency or security, one could argue that derivatives based on the price of a Bitcoin are more akin to bets than financial derivatives. It'll be interesting to see if the CFTC will object.
Intrade sold binary options depending on, among other things, the outcome of political elections. They were most definitely a bet, but they were still a security according to the CFTC.
“It is against the law to solicit U.S. persons to buy and sell commodity options, even if they are called ‘prediction’ contracts, unless they are listed for trading and traded on a CFTC-registered exchange or unless legally exempt,” http://www.outsidethebeltway.com/americans-shut-out-of-intrade/ http://www.outsidethebeltway.com/americans-shut-out-of-intra...
The CFTC sued Intrade in 2012, and Intrade closed its doors to US customers.
- jackgavigan 13y agoI seem to recall that the CFTC were primarily concerned with the fact that Intrade offered options based on the price of currencies and gold. Nadex were also smacked down when they tried to offer derivatives based on US elections, so those are clearly regulated too. As for the price of Bitcoin? Like I said, it'll be interesting to see what the CFTC say.