Virtual Currency, Not a Currency?

With public interest in Bitcoin and other virtual currencies continuing to grow, the question of whether virtual currencies are regulated at the Federal level has arisen. The Commodity Futures Trading Commission, in particular, has been aggressive in asserting its regulatory authority over a broad swath of activities and transactions involving virtual currencies. In doing so, the Commodity Futures Trading Commission appears to have taken the position that virtual currency is a commodity and not, for the Commission's regulatory purposes, a currency. This paper analyzes the Commodity Futures Trading Commission's position with respect to virtual currency and whether it is appropriate for the Commodity Futures Trading Commission to treat virtual currency as a commodity or a currency.