18/82 CFTC’s 2022 Enforcement Actions Aimed at Crypto

On Thursday, the CFTC released its annual enforcement report for the fiscal year 2022. The report details various actions taken by the Commodity Futures Trading Commission and takes special note of crypto-related actions.

CFTC’s 2022 Enforcement Report Explained

In the report, the CFTC states it filed 82 enforcement actions in 2022 with 18 of these being connected to digital assets—more than 20%. The Commission also mentioned that it obtained orders imposing $2.5 billion in various penalties—notably more than its proposed budget of $365 million requested for 2023.

Chairman Rostin Benham specifically mentioned the actions aimed at regulating the crypto market stating that “the CFTC continues to aggressively police new digital commodity asset markets with all of its available tools.” Benham also characterized 2022 as the year of “unprecedented financial market conditions” citing both the disruption caused by emerging tech and the increased retail investor participation.

The report also lists its most notable actions throughout the year with regard to digital, and other assets. The very first entry on the list is the Commission’s action against Digitex over price manipulation and a failure to register. While not mentioning Mirror Trading by name, CFTC also notes its complaint over a fraud worth $1.7 billion—the case Benham mentioned several times when requesting more authority over digital assets.

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Crypto Regulation in the US Throughout 2022

Amidst the increased crypto regulatory activity in 2022 both in the US, and across the globe, the CFTC has been seeking increased authority over digital assets. While the SEC—the agency that drew the bulk of criticism over its numerous actions both from the community, and certain representatives—appears to be its main rival in the endeavor, Chairman Gensler has been supportive of Benham’s drive.

It is still unclear which agency will take primacy when it comes to cryptocurrency regulation, but it is clear that the watchdogs are bound to get more involved in the following years. This September, the White House finally released its framework for the future regulation of digital assets.

While regulators and representatives have been increasingly vocal on the topic of digital assets, the private sector started organizing. Over the previous months, the very first crypto-focused PAC has been founded by the Blockchain Association, and Coinbase started grading politicians based on how crypto-friendly they are.

Do you think the SEC or the CFTC will become the main digital assets regulator in the US? Let us know in the comments below.