The CFTC says over 20% of cases handled this year involved crypto
The CFTC (Commodity Futures Trading Commission) and the Securities Exchange Commission (SEC) are two regulatory offices in the United States that have been the subject of a number of debates about who should oversee the crypto market and the illegal activities involving cryptocurrencies.
It is public knowledge that the SEC wants nothing less than full control in controlling virtual assets such as digital and stablecoins.
The CFTC, for its part, also wants the same level of regulatory power, which would entail strengthening its control over certain financial instruments while at the same time having the opportunity to add more income for the office.
The neck-to-neck battle between the two regulators may have shifted in favor of the CFTC as it recently did announced that it will help to build up his case.
The CFTC is initiating 18 crypto-related actions this year
According to a statement released by the CFTC on October 20, the Department of Enforcement (DOE) had 82 enforcement actions for fiscal year 2022, with 18 of those actions related to cryptocurrencies.
In percentage terms, the digital asset class accounted for more than 20% of all filings from the CFTC for this year.
Commenting on the development, Commissioner Rostin Benham said:
“This fiscal year 2022 enforcement report demonstrates that the CFTC continues to aggressively monitor emerging digital commodity markets with all available tools.”
Among the actions taken by Benham’s office this year were the filing of a lawsuit against bZeroX DAO, investigation into the manipulation of the original token of Digitex Futures and an alleged $1.7 billion fraud.
Image: Coincu News
The CFTC also imposed its authority over failure to register a designated contract maker (DCM), futures commission merchant (FCM) and swap execution facility (SEF).
Following this, Benham confidently expressed his willingness to regulate the difficult crypto space, as preparations to become a fully funded regulator of this industry are already underway.
SEC Leaving Bitcoin Regulation to CFTC?
Many were surprised when SEC Chairman Gary Gensler so last month, he is seeking the CFTC to handle regulation of the largest cryptocurrency by market cap, Bitcoin, as well as other “non-security” tokens.
Gensler’s office, meanwhile, has its hands full as it remains embroiled in a legal dispute with Ripple Labs thanks to a trial it filed against the creator of crypto-XRP.
The SEC continues to argue that digital currencies are securities and thus will automatically fall under its regulatory powers.
The commission’s position in becoming the top regulator of the crypto market will take a major blow if Ripple Labs manages to emerge victorious from the lawsuit.
The company has collected procedural wins over the SEC as it tries to finally settle the legal battle and continue with its business.
Crypto total market cap at $880 billion on the weekend chart | Featured image from World Time Today, Chart: TradingView.com
