The head of the Commodity Futures Trading Commission (CFTC), Rostin Behnam revealed that the authority will impose intense enforcement over crypto-related scams, after citing the increasing number of digital asset frauds and manipulations.
“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,” CFTC Chairman Rostin Behnam said in a video message delivered at a crypto industry conference in New York.
“Recent global conflicts have highlighted the ability for digital assets to be a tool for those who present risks to the broader American economy, the public, and our way of life,” he added.
Since 2015, the derivative markets regulators have filed over 50 enforcement cases associated with digital assets, and half of them are linked to fraud, said Mr. Behnam while addressing the conference hosted by Chainalysis. Nearly 23 cases were just filed in the last fiscal year.
He also revealed that around ⅔ out of total enforcement actions were taken in the last 2½ years.
The official statement came out when the bloodbath in the cryptocurrency intensified. Major cryptocurrencies such as Bitcoin, ETH are seeing a record-breaking downfall. While crypto token such as Terra was also whipped out in this tsunami.
Also Read: Terra Crashes Over 90% Due To FUD Spread about UST de-pegging
Mr. Behnam revealed that the CFTC is exploring the use of its existing authority to curb the fraud and scams happening through the manipulation of the crypto.
Last month, a group of lawmakers passed house bills that allow CFTC to regulate crypto exchanges, stablecoins, crypto developers, and others.
Me. Behnam asked crypto industry players to recognize and stay in line with the regulatory framework, which will help them to eliminate bad actors from frauds.
“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,” he said. “I’ve said many times, the crypto markets present unique characteristics that would benefit from the federal market oversight.”
