Jurisdiction over Spot Markets: CFTC has authority in fraud or manipulation cases
The CFTC has jurisdiction over the purchase or sale of commodities in spot transactions when manipulation or fraud is involved. A spot transaction is a contract to buy an asset for cash. Spot transactions usually settle in two business days or less. Generally speaking, a commodity is an asset that can be bought or sold and which is interchangeable with other commodities of the same type. Commodities include things like precious metals, foreign currency, agricultural products (like corn, oats, soy beans, livestock, cotton, etc.), some forms of digital assets, carbon credits, and energy products (like crude, heating oil, or natural gas). In recent years, the CFTC had success in using its anti-fraud and manipulation authority to bring cases in the spot digital asset markets. Accordingly, whistleblowers who notify the CFTC of fraud or manipulation in spot transactions may qualify for an award. This may include fraud by false statements as well as insider trading violations.