Bit by bit, bitcoin is gaining in legitimacy. Each passing year has seen the digital currency, which has come to be associated with clandestine transactions and shady operators, garnering more credibility in the world of finance.

Now, the so-called cryptocurrency has achieved another mark of distinction by being designated a commodity by the Commodity Futures Trading Commission, or CFTC.

This move further affirms bitcoin’s street cred, theoretically, putting it on equal footing with physical commodities like gold, silver, and oil, as well as complex derivatives. Part of the effort to regulate the bitcoin market is to protect investors against dodgy dealing.

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“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,” said Aitan Goelman, the CFTC’s director of enforcement, in a statement Thursday.

Here’s what the CFTC wrote about bitcoin as a part of its order and settlement with bitcoin firm Coinflip Inc. and its chief executive.

In the Order, the CFTC for the first time finds that Bitcoin and other virtual currencies are properly defined as commodities. The Order further finds that the activities related to commodity option transactions were not conducted in compliance with a provision of the CEA or a provision of the Regulations otherwise applicable to swaps, and were not conducted pursuant to the Regulation 32.3 “trade option” exemption.

However, denoting bitcoin as a commodity has left some traditional commodity players perplexed. “I think it’s a little bit odd [to refer to bitcoin as a commodity],” said Fawad Razaqzada, analyst at Forex.com, who tracks gold and other commodities But he acknowledged that, “We are moving to a point where everything is digital now.”

Some of those concerns may be tied to past volatility associated with the digital currency, which doesn’t exist in a physical form and must be “mined” by computers.

Risks surrounding the virtual money came to light more than a year ago when bitcoin-exchange platform Mt. Gox filed for bankruptcy, rattling the market and cratering bitcoin’s value.

Bitcoin’s road to legitimacy has been marked by such volatility. The currency reached a peak of $1,100 in 2013 but collapsed on the heels of the Mt. Gox implosion. It has subsequently rebounded somewhat and is now valued around $233, according to CoinDesk a news site specializing in digital currencies:

CoinDesk

The CFTC’s bitcoin designation comes three months after New York regulator the Department of Financial Services (DFS) announced sweeping new rules compelling digital-currency operators to apply for a license with the DFS.

In the commodities space, bitcoin doesn’t trade with the likes of gold or oil but at least one commodities participant sees a future for the virtual currency.

“It’s got all the hallmarks of what would make a good futures contract,” said Phil Flynn, senior market analyst at Price Futures Group. Those hallmarks include a stable market, fluctuation in price and the ability for the underlying asset to be delivered, among others.

However that isn’t a guarantee of success.

“Whether or not [bitcoin]’s a successful commodity is a different question,” Flynn said.