Cryptocurrency News: Theย Unitedย States has witnessed a surge in cryptocurrency crackdowns, prompting enterprises to consider relocating their operations offshore. Amidst these developments, a prominent Unitedย States regulatingย authority announced a strong statement, cautioning cryptocurrency corporations against perceiving the Commodity Futures Trading Commission (CFTC) as a potentially friendlier regulatingย authority than the opulent Securities and Exchange Commission (SEC).
CFTC Not A Potential Cryptocurrency Ally
Christy Goldsmith Romero, one of the 5 commissioners at the CFTC, revealed that digitalย currency cases now constitute approximately 20 percent of the agencyโs portfolio. This includes recent civil cases brought against major exchanges such as Binanceย Cryptoย exchange and FTXย Tradingย Ltd. In March, the CFTC filed a lawsuit against Binanceย Cryptoย exchange and its CEO Changpeng โCZโ Zhao, alleging the operation of a sham compliance program. CZ countered the states, describing them as an incomplete representation of facts.
Inย addition, the regulatingย authority voiced her dissent over the belief that the CFTC has a โlight touchโ inย theย caseย of regulating digitalย currencies. Althoughย while taking a dig on the matter, Romero was quoted as saying:
Light touch regulatingย authority would never be written on my tombstone.
Goldsmith Romero dismissed the notion of hostility betwixt the CFTC and the SEC in terms of regulating the new class of digital assets. Nonetheless, she acknowledged that certain cryptocurrency products have presented challenges for regulatory bodies, as they continue toย understand the nascent industry. On the other hand, CFTC Chairman Rostin Behnam has been found to actively seek expanded authority from lawmakers to oversee spot cryptocurrency markets, suggesting a growing interest in strengthening oversight.
Read More: United States Seeks To Recover Stolen Cryptocurrency Assets From Binance
Growing Number Of Cryptocurrency Frauds
Addressing the growing number of fraud cases in the cryptocurrency market, Romero emphasized the need for action, stating that it is impossible to police all instances of fraud but highlighting the urgency to take appropriate measures. The CFTC recently filed a case against the now-defunct FTXย Tradingย Ltd, accusing the exchange and its founder, Sam Bankman-Fried, of causing losses exceeding $8 Billion in customer deposits.
The cryptocurrency crackdowns in the Unitedย States highlight the pressing need for regulatory clarity and coordinated efforts between regulatoryย authorities to effectively address emerging challenges. Asย alreadyย stated earlier on CoinGape, United Statesโ largest digitalย currency exchange Coinbaseย Cryptoย exchange, recently filed a mandamus petition against the SEC to enforce clear regulatory guidelines on digital assets.
