Global regulators have charted a somewhat varied course regarding crypto regulation. The US Commodity Futures Trading Commission (CFTC) has made no reservations however about policing cryptocurrency fraud, issuing its harshest rhetoric to date.
Other countries have chosen to grapple with crypto regulation in a variety of ways. On one side of the spectrum you have China, which has taken repeated and extended steps ot curb crypto trading and mining entirely. Other countries see grounds for safe and legal exchange trading – all regulators however recognize the potential threat that cryptos pose on an unsuspecting population.
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With the rapid rise of crypto trading in the US and globally, domestic regulators have sharpened their teeth against any abuse. Today’s joint statement from CFTC Enforcement Director James McDonald and SEC Enforcement Co-Directors Stephanie Avakian and Steven Peikin echoed this sentiment:
“When market participants engage in fraud under the guise of offering digital instruments – whether characterized as virtual currencies, coins, tokens, or the like – the SEC and the CFTC will look beyond form, examine the substance of the activity and prosecute violations of the federal securities and commodities laws.”
“The Divisions of Enforcement for the SEC and CFTC will continue to address violations and to bring actions to stop and prevent fraud in the offer and sale of digital instruments,” the statement went on to say.
The rhetoric serves as a warning shot for all individuals in the crypto space. While the industry is in its infancy relative to other segments in the US, regulators have wasted no time in taking a hard line against all forms of abuse, none of which will be tolerated under the CFTC’s or SEC’s watch.