CFTC Commissioner Admits Powerlessness Against Cryptocurrency Fraud

CFTC Commissioner Admits Powerlessness Against Cryptocurrency Fraud

A top United States regulating authority stated on Tuesday there is no way to police all digital currency fraud because there is so much, though her agency is working on plenty of big cases.

Christy Goldsmith Romero, one of 5 commissioners at the Commodity Futures Trading Commission (CFTC), stated digital currency cases account for about 20 percent of the agency’s portfolio, including recent civil cases against the exchanges Binance Crypto exchange and FTX Trading Ltd. “There’s just many of fraud in the space,” Goldsmith Romero stated at a white collar felony conference at the New York City Bar Association. “There’s just no way we can police all the fraud, but we’ve got to do something.”

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CFTC Chairman Rostin Behnam has sought greater authority from lawmakers for the agency to oversee spot cryptocurrency markets.

Goldsmith Romero pushed back on the idea there was a “turf war” betwixt the CFTC and the Securities and Exchange Commission over regulating cryptocurrency, but acknowledged that a lot of the industry’s products are new and the agencies were “still attempting to figure it out.”

She likewise stated cryptocurrency corporations should not view the CFTC as a potentially friendlier regulating authority than the deeper-pocketed SEC.

“I don’t like the idea that somehow the CFTC is light touch,” Goldsmith Romero stated. “‘Light touch regulator’ would never be written on my tombstone.” In March, the CFTC sued Binance Crypto exchange and Changpeng Zhao, its founder and CEO, for allegedly operating a sham compliance program.

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Zhao has was known the complaint an “incomplete recitation of facts.”

The CFTC case against now-bankrupt FTX Trading Ltd accuses the exchange and founder Sam Bankman-Fried of causing the loss of over $8 Billion in customer deposits.

Bankman-Fried has pleaded not guilty to related criminal charges from the United States Department of Justice.


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