{"id":6546,"date":"2021-11-14T23:06:16","date_gmt":"2021-11-14T23:06:16","guid":{"rendered":"https:\/\/www.sygna.io\/?p=6546"},"modified":"2021-11-14T23:17:20","modified_gmt":"2021-11-14T23:17:20","slug":"cftc-charges-14-crypto-firms-a-signal-of-wider-regulatory-intent","status":"publish","type":"post","link":"https:\/\/www.sygna.io\/zh-hant\/blog\/cftc-charges-14-crypto-firms-a-signal-of-wider-regulatory-intent\/","title":{"rendered":"CFTC Charges 14 Crypto Firms: A Signal Of Wider Regulatory Intent?"},"content":{"rendered":"\n

In late September 2021, the US commodities federal regulator the CFTC\u00a0charged 14 crypto companies<\/a> for a myriad of transgressions, including failing to register as futures commission merchants (FCM), making false claims about their registration, or making misleading statements about their respective cryptocurrencies.\u00a0<\/p>\n\n\n\n

This move is one of several that have arisen in recent months aimed at crypto players. Actions have recently been taken against several major players including Kraken and Tether<\/a>. These legal actions may signal a larger shift in the US government’s approach towards regulating cryptocurrencies, and will undoubtedly have wider consequences. Here’s what you need to know.\u00a0<\/p>\n\n\n\n

Introduction <\/h2>\n\n\n\n

The US Commodity Futures Trading Commission (CFTC<\/a>) pressed charges against 14 crypto companies on September 29, 2021. This was the beginning of a barrage of actions that have seen various cryptocurrencies, including the popular stablecoin Tether, fall under federal scrutiny.\u00a0<\/p>\n\n\n\n

The CFTC said 12 of the 14 failed companies targeted had failed to register as futures commission merchants (FCM), and the other two allegedly lied about their registration status.\u00a0<\/p>\n\n\n\n

According to a press release issued on Sept. 29, 12 of the options dealers were located in New York. All 12 are relatively unknown and are being accused of failing to register with the CFTC. Two other companies, Climax Capital FX and Digitalexchange24.com, are located in Texas and Arkansas respectively. The two companies are accused of “making false and misleading claims of having CFTC registration and National Futures Association (NFA) membership\u201d.\u00a0<\/p>\n\n\n\n

Who are the CFTC and what do they do?<\/h2>\n\n\n\n

The Commodity Futures Trading Commission (CFTC) is an independent federal agency responsible for overseeing the U.S. derivatives market \u2014 including futures contracts, options, and swaps. <\/p>\n\n\n\n

The Commodity Futures Trading Commission Act established the CFTC in 1974, with the purpose to include promoting competition and efficient markets and protecting investors from manipulation, abusive trade practices, and fraud. Until recently the CFTC has taken a hands-off approach to cryptocurrencies.\u00a0<\/p>\n\n\n\n

Other Recent CFTC Actions<\/h2>\n\n\n\n

September’s decision to press charges represents several or a myriad of crackdowns<\/a> aimed at cryptocurrencies in\u00a0recent months. Others notable, high-profile cases include those against:\u00a0<\/p>\n\n\n\n