CFTC's Record Year in Cryptocurrency Enforcement

The CFTC’s Historic Year in Cryptocurrency Enforcement

The Commodity Futures Trading Commission (CFTC) has been quite the busy bee in the wild world of cryptocurrency, and fiscal year 2020 has turned out to be a record-setting year.

Seven Strikes: The Enforcement Record

According to the annual review released on Tuesday, the CFTC filed seven enforcement actions against firms engaged in dubious crypto activities— a first in its history. It’s almost like they decided, ‘Why not spice things up a bit?’ They took bold stands, including tackling PanForex for offering leveraged trading to U.S. citizens without playing by the rulebook and putting Digital Platinum on blast for classic fraud.

The CFTC’s Superpowers: Manipulation and Deception

As the chief regulator in the U.S. federal commodities landscape, the CFTC typically dives into the spot market only when manipulation or outright deception rears its ugly head. However, when it comes to futures and derivatives, it’s game on! The real mystery lies in determining which cryptocurrencies fall under this umbrella, with Bitcoin (BTC), Ether (ETH), and Litecoin (LTC) generally treated as commodities and not securities. Perhaps the CFTC had their coffee that day!

What Happened on October 1?

Funny enough, the CFTC’s biggest action—against BitMEX—happened just after the close of fiscal year 2020 on October 1. This left a load of crypto enthusiasts wondering how much more explosive the report could have been had it included this piece of news!

Looking Ahead: What Comes Next?

Cointelegraph has pointed out the possibility of a more extensive crackdown in the near future. With fiscal year budgets being regimented, there’s a surge of activity as agencies reconcile their numbers before September 30. The action can sometimes feel like a combination of marching orders and year-end cleanups.

Gensler’s Potential Return: What’s Cooking?

Meanwhile, Gary Gensler, who once helmed the CFTC, is reportedly heading for a significant role in President-elect Joe Biden’s financial team. Known for being tough as nails on Wall Street yet surprisingly knowledgeable about blockchain while teaching at MIT, it might seem like the crypto community has met its match. Will he shake things up or usher in a more friendly tone? Only time will tell!