CFTC will add more resources to monitor the crypto markets better in order to combat fraud and manipulation in the crypto market so let’s read more today in our latest cryptocurrency news today.
The CFTC will add more resources to battle manipulation and fraud in the crypto markets as the chairman Rostin Behnam noted:
“Headlines about the loss of tens of millions of dollars in digital assets due to protocol exploits, phishing attacks, preying on vulnerable people, and other fraudulent and manipulative schemes have become far too common.”
Behnam argued that the recent global conflicts outlined the ability of digital assets to be a tool for all those that present a risk to the broader American economy, the public, and the way of life. The CFTC chairman’s remarks came in the wake of the Terra collapse which made shockwaves on the entire market. The data shows that about $350 billion of the crypto total market cap was wiped out in the past ten days and the losses included ETH, BTC, and other cryptocurrencies beyond just Terra’s LUNA and its UST stablecoin.
According to Behnam, the CFTC filed more than 50 enforcement actions related to activity since 2015 with about 23 of those, filed in the last fiscal year. More than half of the number of crypto cases involved allegations of fraud:
“I also call on everyone here today to continue to advocate and support regulatory obligations that will make these markets more transparent, safer, and resilient. I’ve said many times, the crypto markets present unique characteristics that would benefit from the federal market oversight.”
The CFTC oversees American derivatives markets but it is not the only regulator expressing its intent to bring more crypto staff onboard. Earlier this month, the US SEC announced it was expanding the crypto investigation unit which is renamed Crypto Assets and Cyber Unit to 50 people that will be tasked with overseeing the exchanges, staking services, and DEFI projects. The SEC chairman on the other hand expressed concerns that more investors will suffer the losses in the future:
The CFTC, which oversees American derivatives markets, is not the only regulator expressing its intent to bring more crypto-focused staff onboard.
“I think a lot of these tokens will fail. I fear that in crypto…there’s going to be a lot of people hurt, and that will undermine some of the confidence in markets.”
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