There is no such thing as a solution to crack down on all cryptocurrency scams, says CFTC commissioner

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by Luc Cohen

NEW YORK (Reuters) – The highest U.S. regulator stated on Tuesday there may be a lot cryptocurrency fraud there isn’t a solution to crack down on all of it, however her company is engaged on some massive instances.

Christy Goldsmith Romero, certainly one of 5 members of the Commodity Futures Buying and selling Fee (CFTC), stated cryptocurrency lawsuits, together with current civil lawsuits in opposition to exchanges Binance and FTX, have affected the company’s portfolio. He stated it was about 20%.

“There’s a variety of fraud on this discipline,” Goldsmith Romero advised the New York Metropolis Bar Affiliation’s White Collar Crime Convention. “It is inconceivable to crack down on all fraud, however one thing have to be carried out.”

CFTC Chairman Rostin Behnham has referred to as on lawmakers to provide the CFTC larger authority to supervise the spot cryptocurrency market.

Goldsmith Romero denied the concept that there was a “turf warfare” between the CFTC and the Securities and Trade Fee over regulation of cryptocurrencies, however famous that most of the trade’s merchandise are new and that officers have “not but I am attempting to determine it out,” he admitted.

He additionally stated cryptocurrency firms shouldn’t view the CFTC as a doubtlessly friendlier regulator than the well-funded SEC.

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“I do not like the concept that the CFTC someway has a light-weight contact,” Goldsmith Romero stated. “My tombstone won’t ever say ‘Gentle Contact Regulator’.”

In March, the CFTC sued Binance and its founder and CEO Zhao Changpeng for allegedly operating a faux compliance program.

Mr. Zhao referred to as the criticism an “incomplete assertion of truth.”

The CFTC lawsuit in opposition to bankrupt FTX accuses the trade and founder Sam Bankman-Fried of inflicting greater than $8 billion in losses on buyer deposits.

Bankman-Fried has pleaded not responsible to associated prison costs introduced by the US Division of Justice.

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