CFTC Vows To Increase Scrutiny Of Cryptocurrency Markets In 2022

The Commodity Futures Trading Commission (CFTC) said that in order to demonstrate its dedication to consumer protection and market integrity, it has vigorously implemented 18 legal proceedings relating to cryptocurrencies in 2022.

In its 2022 enforcement report, the CFTC noted that it had fined 82 legal actions involving commodities assets, including cryptocurrency, more than $2.5 billion.

18 entities were indicted, accounting for more than 20% of the enforcement. Actions against Ooki DAO, Digitx Futures, Gemini exchange, Tether, and Mirror Trading International were mentioned in the report.

On September 22, after charging Ooki DAO and levying a $250,000 fine, the CFTC created a precedent. It was alleged that the DAO violated the Bank Secrecy Act by providing illicit leverage and margin trading services.

Additionally, the cryptocurrency exchange “Digitex Futures” was accused of manipulating its native token DGTX, issuing unregistered futures products, and not putting KYC and anti-money laundering procedures in place.

In 2017, the CFTC filed a lawsuit against the cryptocurrency exchange Gemini for allegedly spreading false information concerning the Futures Contracts’ susceptibility to market manipulation.

In addition, for making false claims regarding the U.S. dollar assets in its reserve, stablecoin issuer Tether was charged with a crime and fined $41 million.

For allegedly scamming investors of more than $1.7 billion in Bitcoin, South African-based Mirror Trading International (MIT) was charged.

Rostin Behnam, the chairman of the CFTC, stated that the agency was determined to aggressively pursue criminal prosecution of rogue actors in the cryptocurrency industry. 

Mr. Behnam said:

“The FY 2022 enforcement report shows the CFTC continues to aggressively police new digital commodity asset markets with all of its available tools.”

Moreover, earlier in June, a number of cryptocurrency exchanges expressed their support for the CFTC taking the lead in overseeing the sector.

Related Reading | Binance Awarded Class 3 Registration By Cyprus Securities And Exchange Commission

In order to give the CFTC control over the regulation of digital commodities, such as Bitcoin and Ethereum, the U.S. Senate Agriculture Committee proceeded to present a bill.

Additionally, SEC Chairman Gary Gensler endorsed the lawmaker’s proposal, saying he wanted to give the CFTC additional regulatory authority “so long as it does not take power away from the SEC.”

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