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    CFTC thinks crypto fraud is basically unstoppable – Cryptopolitan

    Ikhtisar:Cryptocurrency fraud, an emergent and daunting concern, appears to be a battle of epic proportions for regulatory agencies. The US Commodity Futures


      CFTC thinks crypto fraud is basically unstoppable – Cryptopolitan

      7 mins ago

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      Cryptocurrency fraud, an emergent and daunting concern, appears to be a battle of epic proportions FOR regulatory agencies. The US Commodity Futures Trading Commission (CFTC), a KEY overseer of this increasingly complex space, is finding the scale of this malfeasance overwhelming, yet remains undeterred.

      Christy Goldsmith Romero, a distinguished commissiONEr of the CFTC, asserted at a recent white-collar crime conference at the New York CITY BAR Association that while the prevalence of crypto-related fraud is daunting, the agency remains resolute in its efforts.

      An alarming 20% of the CFTCs current caseload pertains to cryptocurrency, signifying a new frontier in its supervisory responsibilities.

      Highlighting the depth of this predicament are recent civil cases that the CFTC has brought against crypto exchanges LIKE BINANCE and FTX. These cases illustrate the intricacies of the regulatory landscape.

      Binance, one of the largest global crypto exchanges, and its founder, Changpeng Zhao, have been sued by the CFTC for allegedly maintaining a veneer of compliance.

      While Zhao dismisses the allegations as an “incomplete recitation of facts”, the case highlights the challenges the agency faces in grappling with the FAST-evolving digital asset marketplace.

      FTX, another major player in the crypto industry, is similarly on the CFTCs radar. The agency accuses FTX and its founder, Sam Bankman-Fried, of missteps resulting in the loss of over $8 billion in customer deposits.

      While Bankman-Fried has pleaded not guilty to accompanying criminal charges, the case underscores the enormous stakes in the fight against cryptocurrency fraud.

      As the CFTC finds itself confronting these challenges, a broader question has emerged over the overlapping jurisdictions of different regulatory bodies.

      CFTC Chairman, Rostin Behnam, has called for enhanced authority for the agency to oversee spot crypto markets. Concurrently, the Securities and Exchange Commission (SEC) is examining its role in the evolving landscape.

      Despite a sense of an emerging “turf war” between the CFTC and the SEC, Commissioner Goldsmith Romero refutes this. She suggests that the agencies are collectively navigating these uncharted territories, acknowledging that the nature of many new cryptocurrency products requires a cohesive regulatory approach.

      Contrary to some industry perspectives, she insisted that the CFTC is not a “light touch” regulator. Rather, she insists that her agency is steadfast in its duty to protect consumers, and is not shying away from rigorous enforcement where necessary.

      The proliferation of crypto fraud underscores the challenges faced by regulators worldwide. While the agency is up against a Herculean task, the cases against Binance and FTX reflect its resolve to protect the integrity of the financial system and safeguard consumers from potential harm.

      As the crypto industry continues to evolve, the CFTC, along with its fellow regulatory agencies, is striving to KEEP pace, deter fraud, and establish a sound regulatory framework. This, despite the inherent complexities and the seemingly unstoppable tide of cryptocurrency fraud.