Rostin Behnam, CFTC’s chair, claimed he is pleased with the regulator hitting more crypto projects with enforcement interventions.
The Commodity Futures Trading Commission (CFTC) is going after more crypto criminals than before. A Tuesday statement by the regulator showed that its enforcement findings for the year entailed many cases in the digital asset space.
CFTC Activity Increases by 49% With Over $4.3 Billion Generated
The announcement showed that in the 2023 fiscal year, the regulator brought 47 activities entailing conduct associated with digital asset commodities. It added that this figure signifies more than 49% of all activities, leading to penalties, disgorgement, and restitution amounting to more than $4.3B.
The regulator’s statement indicated that in the 2023 financial year, it strengthened its reputation as a leading enforcement agency in the digital asset space. Rostin Behnan, CFTC’s chair, claimed he was ‘satisfied’ with CFTC’s work in the crypto space.
The CFTC listed some of the significant actions in space. For instance, there were charges against FTX, a fallen digital asset exchange, Sam-Bankman-Fried (SBF), its boss, and Alameda Research, Bankman-Fried’s botched trading company. Secondly, it listed accusations against Binance, the globe’s biggest crypto exchange, and its chief executive officer. Thirdly, the case was against Celsius Network and Alex Mashinsky, its ex-CEO.
In the meantime, Gary Gensler, the Securities and Exchange Commission’s (SEC’s) chair, has constantly been called on to appear before Congress concerning his agency’s capability to control the crypto sector. In September, he appeared before the House Financial Services Committee, where he was criticized due to his ‘allegiance to major banks.’
During the September 27 hearing, representative Patrick McHenry (R-NC), who served as the U.S. House of Representatives’ acting speaker for some time, failed to hesitate. He told Gary that his efforts to curb the digital asset ecosystem are vivid to all. Additionally, he accused him of causing ‘more misperception and permanent destruction’ via his actions and slammed the SEC for its ‘losing record’ in the courts.
SEC Losing Streak Continues as GBTC Plea Prevails
The Securities and Exchange Commission was recently asked to evaluate Grayscale’s application to change its Grayscale Bitcoin (GBTC) into a spot Bitcoin exchange-traded fund (ETF). The agency dismissed the application. The asset manager sued the regulator, which resulted in a judge siding with Grayscale. In this case, the SEC’s rejections were considered ‘unpredictable and uninformed.’
The CFTC’s release on Tuesday showed the agency had filed and addressed charges against several decentralized finance (DeFi) protocols. DeFi is the industry in the crypto space intending to use blockchain-founded technology to substitute banks as well as traditional financial institutions.
Further, CFTC stated that three decentralized finance projects, ZeroEx Inc., Opyn, Inc., and Deridex, Inc., are suspected of unlawfully providing margin and leveraged commodity transactions in digital asset commodities. Since then, every firm has settled with the agency.
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