US CFTC will reward crypto whistleblowers with 10% to 30% of the fine amount
O August 8, the US Commodity Futures Trading Commission (CFTC) announced that it paid a whistleblower a $1 million award for providing details of improper trading on a cryptocurrency platform.<br>CFTC Enforcement Director Ian McGinley said that as more and more Americans become victims of cryptocurrency scams, the CFTC is increasingly relying on tips from whistleblowers to conduct investigations. Whistleblowers can receive between 10% and 30% of the fine amount. These funds come entirely from the institution's customer protection fund.<br>Under the Commodity Exchange Act (CEA), the CFTC does not disclose the identity of whistleblowers, specific enforcement actions, or exact reward amounts. "In the previous fiscal year, cryptocurrency cases accounted for nearly 50% of the CFTC's docket, and most of the whistleblowers were related to cryptocurrency."
Robinhood, Coinbase, Others Oppose CFTC Regulation of Political Prediction Markets
A rule change proposed by the U.S. Commodity Futures Trading Commission (CFTC) could threaten the operation of fast-growing political prediction markets such as Polymarket in the United States, sparking strong opposition from cryptocurrency and financial technology companies. Opposition voices came from companies such as Gemini, Crypto.com, Robinhood, Coinbase, and individuals such as well-known blogger Scott Alexander.
U.S. CFTC, Department of Justice, FBI and other federal agencies will jointly combat crypto fraud
On July 13th, reported that the US CFTC and the Department of Justice's National Cryptocurrency Enforcement Team (NCET) held the first Fraud Disruption Conference this week to address cryptocurrency scams such as Ponzi schemes. These types of scams result in billions of dollars in losses for American citizens every year, making them a key focus of law enforcement. Institutions participating in this conference include the FBI, Social Security Administration, US Treasury Department, DEA, US Postal Inspection Service, Secret Service, US Attorney's Office for the District of Columbia, Massachusetts Attorney's Office, and the SEC.
CFTC urges investors to be wary of AI-created crypto asset arbitrage algorithms
According to the US Commodity Futures Trading Commission (CFTC), investors are warned to be cautious of software or algorithms created by AI that claim to generate a 100% "winning" rate. The CFTC has identified encrypted asset trading schemes, trading signal strategies, or automated trading algorithms created by some artificial intelligence as tools used by fraudsters to target investors. In a statement released through the CFTC's Office of Customer Education and Outreach (OCEO), the committee also expressed concern about the increasing number of criminals using AI to hype up theft from users. The statement said that fraudsters spread false information through social media platforms and so-called influencers, further exacerbating the problem. Unlike traditional media or advertising companies, influencers and social media platforms are not bound by conventional marketing or advertising rules. Nevertheless, the statement listed some steps that investors should always take before investing their money.
U.S. CFTC Chairman: Spot Bitcoin ETFs will bring risks and federal legislation is urgently needed
Rostin Behnam, the Chairman of the US Commodity Futures Trading Commission (CFTC), expressed his concerns about the risks that the recently approved spot Bitcoin ETF product may bring during an event held by the American Bar Association today. He once again called for federal legislation to regulate cryptocurrencies. Behnam said, "I am concerned that the regulatory approval of Bitcoin ETPs may bring risks. Retail and institutional investors may mistake the technical approval of the product for actual regulation of cash commodity digital assets. The need for federal legislation has never been more urgent, and I will continue to call for action." Behnam also stated that there are currently no good measures to "address the opaque and inconsistent practices in the cash markets of digital assets" regarding conflicts of interest and customer protection issues.
The U.S. CFTC accuses the Debiex gang of embezzling more than $2.3 million in customer assets through crypto scams
The US Commodity Futures Trading Commission (CFTC) has announced that it has filed a lawsuit against Debiex and Zhăng Chéng Yáng in the Arizona state court in its second case, involving the use of digital assets to solicit customers through deception. The complaint alleges that since approximately March 2022, Debiex has used cryptocurrency scams to collect and misappropriate more than $2.3 million from at least five US customers.
CFTC recommends strengthening commodity swap supervision and requiring reporting of relevant data on crypto assets, etc.
US Commodity Futures Trading Commission (CFTC) has proposed strengthening reporting requirements for swap dealers (SDs) in order to obtain high-quality swap data to identify granular risks. Specific content includes: requiring unique product identifiers for swap transactions; requiring specific customer data for reporting products and risk exposures; and requiring relevant data for reporting encrypted assets. CFTC Commissioner Christy Goldsmith Romero stated that accurate, timely, and high-quality swap data is crucial for improving market transparency and avoiding systemic risks, and this move helps prevent financial risks and promote financial stability. (Futures Daily)
The U.S. CFTC proposes to require derivatives clearing organizations to separate client funds from their own funds
A proposal passed by the US Commodity Futures Trading Commission (CFTC) requires derivatives clearing organizations (DCOs), the main intermediaries in the industry, to separate customer funds from their own funds. The proposal will now enter a period of public comment, which is a crucial step in the process of developing rules that apply to all companies under commodity regulatory agencies. The goal of the proposed rules is to protect customer funds if DCOs face liquidity constraints, such as a large number of withdrawal requests from cryptocurrency exchanges.
US CFTC Chairman States Many Cryptocurrencies Are Considered Commodities Under Current Laws, Calls for Clear Regulatory Guidelines
The chairman of the US Commodity Futures Trading Commission (CFTC), Rostin Behnam, has stated that many cryptocurrencies are considered commodities under current laws, including Ethereum and stablecoins. However, there is a lack of clear regulatory guidelines, which is hindering businesses operating in the crypto industry in the US. Behnam has emphasized the need to figure out how existing laws fit into this new technology and the necessity for a new way of thinking around policy and legislation. The differing views of the CFTC and the Securities and Exchange Commission (SEC) have led to a regulatory dispute, causing uncertainty and discouraging some crypto companies from continuing business in the US.
CFTC Chairman: Good relationship with SEC, Congress should step in to solve loopholes in encryption supervision
CFTC Chairman Rostin Behnam stated that there are loopholes in US crypto regulation and that Congress should intervene legislatively to address the issue. He pointed out that although many tokens are recognized as commodities, the regulatory environment is still imperfect and called on Congress to take action.<br>Rostin emphasized that CFTC and SEC have a common interest in protecting the market and financial ecology, and their relationship is good. He did not specifically respond to differences in views on cryptocurrencies with SEC Chairman Gary Gensler.
