On Tuesday, a U.S top regulator stated that that due to the extensive presence of cryptocurrency fraud, it is impossible to police all cases.

However, the agency is actively pursuing significant cases related to this issue. Christy Goldsmith Romero, one of the Commodity Futures Trading Commission CFTC commissioners, disclosed that cryptocurrency cases make up approximately 20% of the agency’s workload. This in turn includes recent civil cases involving exchanges such as Binance and FTX.

Goldsmith Romero made these remarks during a white-collar crime conference held at the New York City Bar Association. Further, she emphasised the prevalence of fraud within the crypto space. Despite acknowledging the impossibility of fully policing all instances of fraud, she stressed the importance of taking action.

The CFTC Chairman, Rostin Behnam, has been advocating for increased authority from lawmakers. This will enable the agency to oversee spot crypto markets.

CFTC acting as a light-touch regulator of Cryptocurrencies

Addressing the perception of a “turf war” between the CFTC and the Securities and Exchange Commission (SEC) regarding crypto regulation, Goldsmith Romero expressed that the industry’s products are relatively new. Moreover, the agencies are actively working to understand and regulate them.

Bitcoin and ether cryptocurrency representing recent CFTC regulation

Crypto companies were cautioned against assuming that the CFTC is a more lenient regulator compared to the financially well-equipped SEC.

Goldsmith Romero firmly stated her disapproval of the notion that the CFTC is a “light-touch regulator,” asserting that she does not wish for that description to be associated with her role at the agency.

In March, the CFTC filed a lawsuit against Binance and its founder and CEO, Changpeng Zhao. It alleged their involvement in operating a fraudulent compliance program. Zhao responded by stating that the complaint did not present a complete and accurate account of the facts.

The CFTC’s case against FTX, which has since gone bankrupt, accuses the exchange and its founder, Sam Bankman-Fried, of causing customer deposits to be lost. It totals over $8 billion. Bankman-Fried has entered a plea of not guilty in response to related criminal charges brought forth by the U.S. Department of Justice.

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Tanishi is an established writer in the realm of cryptocurrency and blockchain, renowned for her expertise and insightful analysis. With a deep-rooted passion for the dynamic world of digital finance, Tanishi delivers compelling news and articles that captivate a wide-ranging audience.