CFTC – The Commodity Futures Trading Commission has bolstered its police actionswithin thelastfinancial year, drivenfor mostby cryptocurrency cases, in line with with‘The Wall Street Journal’.Under the rule of President Trump, the federal derivatives market regulator leviedaround$900 Mln in civil penalties in 2018 alone,crossingthe annualamountin5of the 8 years of the Obama administration.The amounthad declined in 2017, drawing criticism frominvestorsclusters along with several Democrats.
A former CFTClawyer ‘Gary DeWaaal,’ who iscurrentlyspecial counsel at Katten Munchin Roseman LLP, told the WSJ that the agencyis aware ofcryptocurrency fraud as a rising issue,at the side of tradingand ongoing manipulation, and hastargetedon spoofing.
The CFTC chairman ‘J. Christopher Giancarlo’ extolled the agency’slawsuitactivity numbersin a very presentation held at Minneapolis last week,callingitthe foremostvigorousenforcementin the history.
The CFTC filed5timesadditionalspoofingconnectedcases – practices that distortprices–within thepast year than anypreviousyear. The agencyconjointlywon a court judgment that determined cryptocurrenciesarecommodities,which allowsthe regulator to police cryptocurrency markets.
Giancarloalso mentioned thatthe agency in 2018 levied finesmore than$10 Mln intencases, asopposedto an avg. of 3 casesannuallybeneaththe Obama administration.
The agencyconjointlyreached settlements between $30 Mln to $90 Mlnregardingrate of interest benchmark manipulation withinmanybanks. He compared the 2018 numbers to years 2009 and 2016, not 2017,thatwas a transition year between the administrations.
The CFTC actionsareexpected toellaboratewith those of the Securities and Exchange Commission [SEC],thathasplayeddown its numberspriorof revealing them laterwithin theyear. The 2agencies policecompletely differentsegments of thefinancialmarkets, with some overlap on derivatives andotherareas.
SEC fineswere downby around7.21% in 2017 to around $3.8 Bln, markingthe leastsince 2013,in line withthe agency.
The SEC’s co-director ofenforcement ‘Stephanie Avakian,’ indicatedin a recent speech in Sept. thet the agency’s numbersmightfallonce morein 2018partiallyon account of Supreme Courtdecisionscurbing the agency’s ability to reclaim funds forvictimisedinvestors. However, she has vowed that the agencywouldtake anadditionalactive role in policingillegalICOs,leading tomore substantialenforcement actions.