In the words of Christy Goldsmith Romero, a commissioner at the Commodity Futures Trading Commission (CFTC), cryptocurrency fraud creates a huge issue for regulators because the high amount of illegal activity makes it impossible to properly regulate every single instance.
Goldsmith made a few statements at a conference. She said that crypto-related cases presently represent around 20% of the CFTC’s portfolio. While conceding the prevalence of fraud in the crypto field, Goldsmiths said that the company is committed to taking action.
She acknowledged that there is no way they can fully police all of the fraud. Nevertheless, she mentioned that they still have to do something against such activities. The CFTC has been prosecuting large cases lately.
💰🚫 Can't police all #cryptocurrency fraud, says CFTC commissioner.
With fraud rampant in the space, the agency is tackling major cases against exchanges like Binance and FTX. 🛡️#CryptoRegulation #Crypto #SEC
— Walletor (@walletorapp) May 24, 2023
Some of the cases are related to renowned crypto exchanges such as Binance and FTX. This is mainly done with the goal of protecting investors and maintaining market integrity. Moreover, CFTC Charman Rosting Behnam has also been asking lawmakers to be given more authority in cryptocurrency markets.
Goldsmith, also mentioned that there is no rivalry between the CFTC and the Securities and Exchange Commission (SEC) over crypto regulation. She admitted that both groups are negotiating the difficulties of the crypto sector.
The CFTC is currently suing Binance and its founder Changpeng Zhao. This is because allegedly Binance was running a non-complain program. Similarly, the CFTC charged FTX and its founder, Sam Bankman-Fried, with creating huge losses in customer deposits totaling more than $8 billion. Sam Bankman-Fried has pleaded not guilty to these federal accusations.
Conclusion
As the crypto sector continues to evolve, regulators such as the CFTC face the task of keeping up with it. New trends and new methods of fraudulent activities make it even harder. Nevertheless, the CFTC remains committed to taking action and making sure that the market is safe in the quickly growing crypto ecosystem.
If you want to invest safely in crypto you can read our article about safe cryptocurrency investing.
