U.S. Regulator Says CFTC Is Not Crypto-Friendly Over The SEC
Crypto News: The United States has witnessed a surge in crypto crackdowns, prompting businesses to consider relocating their operations offshore. Amidst these developments, a prominent U.S. regulator issued a strong statement, cautioning crypto companies against perceiving the Commodity Futures Trading Commission (CFTC) as a potentially friendlier regulator than the opulent Securities and Exchange Commission (SEC).
CFTC Not A Potential Crypto Ally
Christy Goldsmith Romero, one of the five commissioners at the CFTC, revealed that cryptocurrency cases now constitute approximately 20% of the agency’s portfolio. This includes recent civil cases brought against major exchanges such as Binance and FTX. In March, the CFTC filed a lawsuit against Binance and its CEO Changpeng “CZ” Zhao, alleging the operation of a sham compliance program. CZ countered the allegations, describing them as an incomplete representation of facts.
Additionally, the regulator voiced her dissent over the belief that the CFTC has a “light touch” when it comes to regulating cryptocurrencies. While taking a dig on the matter, Romero was quoted as saying:
Light touch regulator would never be written on my tombstone.
Goldsmith Romero dismissed the notion of hostility between the CFTC and the SEC in terms of regulating the new class of digital assets. However, she acknowledged that certain crypto products have presented challenges for regulatory bodies, as they continue to comprehend the nascent industry. On the other hand, CFTC Chairman Rostin Behnam has been found to actively seek expanded authority from lawmakers to oversee spot crypto markets, suggesting a growing interest in strengthening oversight.
Read More: United States Seeks To Recover Stolen Crypto Assets From Binance
Growing Number Of Crypto Frauds
Addressing the rising number of fraud cases in the crypto 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 FTX, accusing the exchange and its founder, Sam Bankman-Fried, of causing losses exceeding $8 billion in customer deposits.
The crypto crackdowns in the US highlight the pressing need for regulatory clarity and coordinated efforts among regulators to effectively address emerging challenges. As reported earlier on CoinGape, United States’ largest cryptocurrency exchange Coinbase, recently filed a mandamus petition against the SEC to enforce clear regulatory guidelines on digital assets.
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