US Regulator CFTC Set To Go Hard On Cryptocurrency

In a bid to ensure compliance, the United States Commodity Futures Trading Commission (CFTC) says it will closely regulate and monitor the digital assets market in the 2022 fiscal year according to a new report. 

The CFTC asserts that 20% of its enforcement actions were directed at the digital assets market so as to avoid undue shortchanging.

The agency further reveals that it is behind 18 different enforcement actions that have been upheld in the crypto space this year alone. 

The report unmasks the fact that a combination of 82 enforcement actions have been filed in 2022’s fiscal year with about $2.5billion imposed as severance package or civil monetary penalties. 

It would be recalled that the CFTC recently imposed a $250,000 fine on bZeroX, its successor Ooki DAO as well as its founder. 

Also, a Wisconsin broker was ordered to pay over $750,000 for improper trade allocation and additional violations.

ENFORCEMENT NEWS: The CFTC ordered a Wisconsin broker to pay over $750,000 for improper trade allocation and additional violations. Learn more: https://t.co/iry99rcqja

— CFTC (@CFTC) October 20, 2022

However, the CFTC also found the cryptocurrency trading platform, Bitfinex, guilty of engaging in illegal and off -exchange retail commodity transactions in digital assets without acquiring the necessary license. 

Tether Holdings Limited was also not spared as it was found to have rolled out misleading statements and deliberate omission of material fact as regards U.S. dollar tether token (USDT) stablecoin. 

The CFTC chairman, Rostin Behnam, maintains that the agency will not relent in providing robust enforcement program that will guarantee transparency and fairness in the market. 

More Crypto Regulations To Be Expected

Prior to now, both the CFTC and US Securities and Exchange Commission (SEC) had contended against each other over the control of crypto asset regulations. 

Recall that the crypto advocate Senators Cynthia Lummis and Kirsten Gillibrand earlier submitted a bill proposing that the CFTC should oversee crypto regulation, which they believe would work better for the crypto space.

It appears Congress is less likely to focus its attention on digital asset regulation until sometime next year given the prevailing realities. 

Meanwhile, Australia, Ukraine and other countries have mapped tokens as part of its crypto regulation. As such, Australia had begun investigation into cryptocurrency assets within the country.