The Commodity Futures Trading Commission (CFTC) has charged 12 New York-based crypto options businesses with allegedly failing to register with the regulatory body. In a Thursday press release, the CFTC outlined that it is charging 14 entities in total, with the 12 crypto-focused firms all on the hook for failing to register as futures commission merchants (FCMs). All of the firms were "allegedly based in New York." The other two companies have allegedly posted misleading information about their National Futures Association (NFA) membership and registration with the CFTC. The listed crypto options providers include relatively unknown names such as Bitfxprofit, …
The United States Commodity Futures Trading Commission is ordering crypto exchange Kraken to pay more than $1 million in civil monetary penalties related to allegations the exchange is violating the Commodity Exchange Act. In a Tuesday statement, the CFTC said U.S.-based crypto exchange Kraken — operating under the name Payward Ventures — has failed to register as a futures commission merchant and is illegally offering margined retail commodity transactions in digital assets. The order requires the exchange to pay a penalty of $1.25 million and “cease and desist from further violations of the Commodity Exchange Act,” the law under which …
Dan Berkovitz, one of three commissioners currently serving at the United States Commodity Futures Trading Commission, will be joining the Securities and Exchange Commission as general counsel following his departure in October. In a Tuesday announcement, the Securities and Exchange Commission, or SEC, said Berkovitz would assume the role of general counsel starting on Nov. 1, two weeks after stepping down as a commissioner of the Commodity Futures Trading Commission, or CFTC, where he has served since 2018. Berkovitz said he will be working with SEC chair Gary Gensler on a “regulatory agenda that will enhance investor protection.” Though his …
Dan Berkovitz, one of three commissioners currently serving at the U.S. Commodity Futures Trading Commission, or CFTC, said while the agency is suited to futures contracts, swaps, and options trading, it would need additional resources to handle the cash market for crypto assets. Speaking at the Managed Funds Association Digital Assets Conference on Tuesday, Berkovitz said the Commodity Futures Trading Commission enforcement actions in the crypto space have been “aggressive,” citing a $100 million civil monetary penalty against derivatives exchange BitMEX. Though he said the agency had the “capability and the expertise” to further regulate crypto assets, it was currently …
Fall is traditionally the open season for United States financial regulators. The thicket of news coming out of Capitol Hill, federal courts and various regulatory agencies can feel overwhelming around this time, especially for those of us residing outside of these venerable institutions’ purview. It is also clear that the outcomes of these legal battles will have tremendous effects on crypto markets, adoption and, generally, the relationship between state power and the industry worldwide. But that is not the only reason for anyone interested in how the old world adapts to digital finance to follow U.S. developments closely. Gensler of …
On Sept. 14, United States President Joe Biden revealed his picks to fill two vacant seats at the United States Commodity Futures Trading Commission (CFTC). In addition, the president nominated Rostin Behnam, who has run the derivatives regulator as acting chairman since January, to assume the office on the permanent basis. The appointments are unlikely to face serious obstacles on their way to confirmation, as nominees will have to secure a simple majority vote in a Senate currently controlled by Democrats. What can the crypto industry expect of the CFTC if Behnam assumes permanent chairmanship and Kristin Johnson and Christy …
President Joe Biden has tapped acting chairperson of the Commodity Futures Trading Commission (CFTC) Rostin Behnam to assume his position on a permanent basis and two others to fill vacant commissioner seats. In a Monday announcement from the White House, President Biden said he planned to nominate Behnam — who has been serving as lead at the Commodity Futures Trading Commission since former chair Heath Tarbert left in January — in addition to Kristin Johnson and Christy Goldsmith Romero. All must be confirmed by the Democrat-controlled Senate. According to her faculty profile at the Emory University School of Law, Johnson …
Former Commodity Futures Trading Commission (CFTC) chair Christopher Giancarlo, also known as “Crypto Dad,” is leaving the board of crypto lending firm BlockFi but will continue to advise the group on digital assets. In a Wednesday announcement, BlockFi said Ellen-Blair Chube — a managing director and client service officer at investment banking firm William Blair & Company — would be replacing Giancarlo. BlockFi founder and CEO Zac Prince cited Chube’s “strong financial services experience married with her deep knowledge of the public sector” in bringing her on as a board member. Prince added that Giancarlo would contribute in an informal …
The latest news has left the decentralized finance community in a collective fetal position. Responding to the threat of increased regulatory oversight, leading decentralized exchange Uniswap recently restricted the trading of certain tokens. Earlier in July, Dan M. Berkovitz, chairman of the Commodity Futures Trading Commission (CFTC), said that DeFi derivatives platforms might contravene the Commodity Exchange Act (CEA): “Not only do I think that unlicensed DeFi markets for derivative instruments are a bad idea, but I also do not see how they are legal under the CEA.” Most worrisome of all is the initial version of the United States …
Dawn Stump, one of four commissioners currently serving at the Commodity Futures Trading Commission, or CFTC, has released a statement clarifying the agency's authority with respect to digital assets. In a Monday statement, Stump said the CFTC is empowered with both regulatory and enforcement authority for commodities. She did not specifically say that digital assets were cash-like commodities in the eyes of the regulatory body, but “even if a digital asset is a commodity, it is not regulated by the CFTC.” According to the commissioner, however, the agency is within its power to regulate derivatives on digital assets, “such as …
Brian Quintenz, who has served as one of the commissioners with the Commodity Futures Trading Commission, or CFTC, reportedly plans to leave the agency on Aug. 31. According to a Thursday report from the Wall Street Journal, Quintenz is expected to announce his move into the private sector after leaving the CFTC later this month. He hinted that his future career could include a focus on “innovation, particularly related to cryptocurrency and DeFi” and planned to continue advocating for the crypto space. Quintenz was first nominated to the position by President Barack Obama in March 2016 before being re-nominated by …
Two members of the United States House of Representatives have petitioned the heads of the United States Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) to work with participants in the crypto space for transparency and regulatory clarity. In a Monday tweet, Representative Glenn Thompson said he had submitted a letter with Representative Patrick McHenry to the CFTC and SEC, urging the agencies to "establish a joint working group on digital assets.” Thompson and McHenry requested SEC Chair Gary Gensler and acting CFTC Chair Rostin Behnam to “promote an active dialogue” between federal regulators and participants in …