The Commodity Futures Trading Commission (CFTC) has declared itself a leading authority in crypto enforcement, surpassing previous records with a significant number of cases this fiscal year.
The CFTC has taken unprecedented steps in policing the digital asset market during the fiscal year 2023. The agency initiated 47 actions related to digital asset commodities, accounting for over half of its total enforcement activity. These efforts resulted in upwards of $4.3 billion in fines, restitution, and disgorgement.
The CFTC’s statement emphasized their role as a dominant force in digital asset regulation, highlighting the breadth of their enforcement actions. CFTC Chair Rostin Behnam expressed pride in the agency’s achievements within the crypto sector.
Noteworthy among the CFTC’s enforcement actions are the charges against the defunct exchange FTX and its former CEO, along with allegations against the crypto exchange giant Binance and its CEO. The commission also pursued a case against the bankrupt crypto lender Celsius Network and its former CEO Alex Mashinsky.
Meanwhile, the Securities and Exchange Commission (SEC) Chair Gary Gensler has faced criticism from Congress for his agency’s regulatory approach to cryptocurrencies. During a recent hearing, Representative Patrick McHenry accused the SEC of hindering the growth of the digital asset ecosystem.
The CFTC also underscored its actions against several decentralized finance (DeFi) protocols, which aim to displace traditional financial institutions with blockchain technology. Companies such as Opyn, Inc, ZeroEx, Inc., and Deridex, Inc. were charged and have settled with the CFTC for offering illegal leveraged transactions in digital assets.
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