CFTC

The Commodity Futures Trading Commission (CFTC) has filed a lawsuit against Gemini Trust Company LLC. The regulator alleges that the New York-based crypto exchange was deceptive in responding to questions regarding a BTC-backed futures contract.  At present, the CFTC is asking for monetary penalties against the exchange, and other punitive measures, which include stopping Gemini from trading commodities. The CFTC's Complaints The crypto trading firm and its staff, headed by billionaire twins Cameron and Tyler Winklevoss, are currently under fire.…

Rostin Behnam – chairman of the Commodities and Futures Trading Commission – is not happy with Bitcoin’s current levels of energy consumption. He believes regulators should establish incentives to push the network towards a proof of stake (POS) consensus model. Not Worth the Energy, says Benham Speaking at POLITICO’s Sustainability Summit, Benham claimed that Bitcoin’s energy consumption doesn’t match its economic output. “That may rebalance over time, but right now it’s clearly skewed,” he said. Most of Bitcoin’s energy consumption…

Tether was hit with more legal repercussions amid rising concerns about its fiat currency backing. The stablecoin issuer is set to pay $41 million as settlement for allegations that it lied about its reserves. In the same case, Bitfinex received an accompanying charge. The CFTC Strikes against Tether and Bitfinex The news dropped this Friday when the Commodity and Futures Trading Commission (CFTC) issued a press release on the matter. Earlier in the day, the agency settled charges against Tether,…

The United States government is trying to set an excellent regulatory policy for crypto. The Securities and Exchange Commission (SEC) will play a significant part in that effort. Now, the agency is getting some help in its endeavors. This week, the SEC confirmed hiring Dan Berkovitz as its general counsel. Berkovitz is currently a commissioner at the Commodity Futures Trading Commission (CFTC). He has held that position since 2018, so he has solid experience. Interestingly, Berkovitz's tenure at the CFTC lasts until…

When it comes to cryptocurrencies, insider trading does not go without mention. The subject has been a hot topic in the crypto space to the extent of media outlets. In addition, cryptocurrency exchanges such as Coinbase have also faced lawsuits due to allegations of insider trading. Over the years, the government has not set measures against organizations that take part. But, the CFTC's current enforcement practices encompass cryptocurrencies. The regulation will be the same as that applied to securities by the SEC. This article…

BitMEX exchange has agreed to pay $100 million to settle the charges by the U.S. Commodity Futures Trading Commission (CFTC) and the Financial Crimes Enforcement Network (FinCEN) unit of the U.S. Treasury Department. The lawsuit arose from BitMEX unlawfully accepting customer funds to trade cryptos without registration. In addition to this, they failed to conduct customer due diligence. According to CFTC and FinCEN, this went on for six years with U.S. customers. What the Lawsuit Entailed The order found that…

In the wake of COVID-19, many situations have gone south, with many economies crashing as the global pandemic ravaged the world’s rest. However, this was a perfect chance for the digital asset industry, including decentralized finance (DeFi), to rise to fame. The cashless options the space presented to many was a well-needed escape from unnecessary risks of contracting the virus. We have recently seen a boost in a lot of top coins as BTC and ETH reached new all-time highs.…

The Commodity Futures Trading Commission (CFTC) is a US-based agency established by the Commodity Futures Trading Commission Act of 1974 to regulate the commodity futures and derivatives markets, including option markets, futures, and Swaps.  The commission's primary goal is to promote futures markets' competitiveness and efficiency while protecting traders against unscrupulous activities, fraud, and abusive trade practices.  CFTC has five committees; Agriculture, Global markets, Technology, Energy & environmental markets, and Coordination between the CFTC and SEC, each headed by a…

Cryptocurrency growth in the last decade has taken the technological world by storm, and with this growth came many questions and concerns. The classification of cryptocurrency is primarily a chief concern. The subject is one that courts, government agencies, and even financial markets struggle to grasp.  The primary debate begs an answer to an essential question: are they securities or commodities?  Cryptocurrency traverses local, national, regional, and international boundaries. Hence the need for classification is both a national and international…