Published
1 year ago on
October 21, 2022
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The CFTC is starting to come down harder on the digital assets space and has published a report stating that more than 20% of its enforcements this year were related to crypto.
The Commodity Futures Trading Commission (CFTC) is looking to have greater jurisdiction over crypto assets and is seeking to take a larger share of the sector from the SEC. However, although many may believe that having the CFTC as a regulator would be far more benign than the SEC, they should think again.
CFTC cracks down on crypto
The CFTC published its October 20 Annual Enforcement Results in which it boasts of having made 20% of all enforcement actions solely in the digital assets sector.
According to the report a total of 82 enforcement actions were filed in the 2022 fiscal year and $2.5 billion in fines were imposed. Of the 82, 18 were crypto related.
CFTC chairman Ross Benham was proud of his agency’s results and said in the press statement:
“In the face of unprecedented financial market conditions directly impacting American consumers, emerging technological disruption and growing retail investor participation, the CFTC continues its unwavering commitment to a robust enforcement program ensuring the markets we oversee are open, transparent, fair and competitive,”
He spoke particularly about the digital assets sector:
“This FY 2022 enforcement report shows the CFTC continues to aggressively police new digital commodity asset markets with all of its available tools. I personally thank the Enforcement Division’s hardworking and dedicated leadership team and staff,”
Benham boasted of how his agency had brought in $1.5 billion in fines every year for the past decade, which he added was a pretty good return on investment when the CFTC yearly budget of $240 million was taken into account.
The CFTC has history
Those rooting for the CFTC to have a much bigger say in the crypto space should perhaps look to some of the other sectors where the agency has regulatory responsibility.
They could look no further than the precious metals market, where several analysts regularly comment on how the gold, silver, and other metals markets are being heavily manipulated by insiders, and how the CFTC stands to one side and does nothing about it, in spite of being regularly informed about the bizarre price action.
Crypto industry needs to be wary
The crypto industry needs to be extremely wary of the ongoing suppression of the entire industry and all its innovative technology by what might arguably be called representatives for the banking system and all the agencies that have as their main goal the continuance of the fiat monetary system.
The leading financial agencies and organisations around the globe can only see crypto through the perspective of the existing system, and therefore they are starting from an antagonistic view point. Changing this view can only probably be done as more and more of the public start to see the legacy financial system for what it is, and start to demand that regulators do their job fairly and constructively.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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