The Commodity Futures Trading Commission (CFTC) has announced that, for regulatory purposes, Bitcoins and other virtual currencies are officially classified as commodities, according to Bloomberg. The announcement from the CFTC came after it reached a settlement with the company Coinflip, a firm that connected buyers and sellers of Bitcoin options contracts, for "conducting activity related to commodity options transactions without complying with the Commodity Exchange Act (CEA) and CFTC Regulations." 

Aitan Goelman, the CFTC’s Director of Enforcement, commented: “While there is a lot of excitement surrounding Bitcoin and other virtual currencies, innovation does not excuse those acting in this space from following the same rules applicable to all participants in the commodity derivatives markets.”

By doing this, the CFTC has set itself up to be the main regulatory authority over virtual currencies and their derivative products, according to Bloomberg, meaning that the commission has the jurisdiction to regulate them as they would any other commodity, such as crude oil or pork bellies. Businesses offering trading platforms for virtual currencies, too, would need to register with the CFTC and comply with all regulations, again just like any other commodities exchange, such as the CME.