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CFTC Commissioner Warns of Difficulty in Policing Crypto Fraud

Christy Goldsmith Romero, a Commissioner of the U.S. Commodities and Futures Trading Commission (CFTC), has stated that due to the sheer volume of fraud in the crypto space, it is difficult for the federal regulator to effectively police the industry. She revealed that crypto cases account for about 20% of the CFTC’s portfolio, including ongoing civil cases against bankrupt crypto exchange FTX and crypto giant Binance.

Romero clarified that there was no “turf war” going on between the CFTC and the Securities and Exchange Commission (SEC) over regulation of the crypto industry, and warned that her agency was not a “light touch regulator”.

The Commissioner attributed the suspected tensions between the two agencies to the fact that federal regulators are still trying to figure out the best way to effectively police and regulate new products in the crypto industry.

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