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Despite her agency’s efforts, a top U.S. regulator stated on Tuesday that it is impossible to control all bitcoin fraud due to its prevalence.
One of the five commissioners of the Commodity Futures Trading Commission (CFTC), Christy Goldsmith Romero, stated that recent civil lawsuits against the exchanges Binance and FTX are among the cryptocurrency cases that comprise around 20% of the agency’s portfolio.
Goldsmith Romero stated at a white collar crime conference held at the New York City Bar Association, “There’s just a lot of fraud in the space.” “We simply cannot police all of the fraud, but we must take action nonetheless.”
CFTC Chairman Rostin Behnam has sought greater authority from lawmakers for the agency to oversee spot crypto markets.
Goldsmith Romero refuted the notion of a “turf war” between the CFTC and the Securities and Exchange Commission about regulating cryptocurrencies. However, he recognised that many of the industry’s products are new and the agencies were “still trying to figure it out.”
She also said crypto companies should not view the CFTC as a potentially friendlier regulator than the deeper-pocketed SEC.
Goldsmith Romero stated, “I don’t like the idea that the CFTC is somehow lax.” “Light touch regulator” would never appear on my grave marker.
In March, the CFTC sued Binance and Changpeng Zhao, its founder and CEO, for allegedly operating a sham compliance program.
Zhao has called the complaint an “incomplete recitation of facts.”
The CFTC accuses the exchange and its founder Sam Bankman-Fried of causing the loss of more than $8 billion in customer deposits in the action against the now-bankrupt FTX.
Regarding the criminal accusations the US Department of Justice brought, Bankman-Fried has entered a not-guilty plea.
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