Tether Fined By Regulators For Lying About Fiat Reserves

Tether was hit with more legal repercussions amid rising concerns about its fiat currency backing. The stablecoin issuer is set to pay $41 million as settlement for allegations that it lied about its reserves. In the same case, Bitfinex received an accompanying charge. The CFTC Strikes against Tether and Bitfinex The news dropped this Friday when the Commodity and Futures Trading Commission (CFTC) issued a press release on the matter. Earlier in the day, the agency settled charges against Tether,…

CFTC Commissioner to Join SEC as General Counsel

The United States government is trying to set an excellent regulatory policy for crypto. The Securities and Exchange Commission (SEC) will play a significant part in that effort. Now, the agency is getting some help in its endeavors. This week, the SEC confirmed hiring Dan Berkovitz as its general counsel. Berkovitz is currently a commissioner at the Commodity Futures Trading Commission (CFTC). He has held that position since 2018, so he has solid experience. Interestingly, Berkovitz's tenure at the CFTC lasts until…

What is Insider Trading? Why Should Crypto Networks Discourage it?

When it comes to cryptocurrencies, insider trading does not go without mention. The subject has been a hot topic in the crypto space to the extent of media outlets. Popular cryptocurrency exchanges such as Coinbase have faced lawsuits due to allegations of insider trading. Over the years, the government has not set measures against organizations that take part. But, the CFTC's current enforcement practices encompass cryptocurrencies. The regulation will be the same as that applied to securities by the SEC. This article will look…

BitMEX Pays a $100 Million Settlement for Unlawfully Handling Customer Funds

BitMEX exchange has agreed to pay $100 million to settle the charges by the U.S. Commodity Futures Trading Commission (CFTC) and the Financial Crimes Enforcement Network (FinCEN) unit of the U.S. Treasury Department. The lawsuit arose from BitMEX unlawfully accepting customer funds to trade cryptos without registration. In addition to this, they failed to conduct customer due diligence. According to CFTC and FinCEN, this went on for six years with U.S. customers. What the Lawsuit Entailed The order found that…

Can the SEC and Other Financial Regulators Succeed in Regulating DeFi?

In the wake of COVID-19, many situations have gone south, with many economies crashing as the global pandemic ravaged the world’s rest. However, this was a perfect chance for the digital asset industry, including decentralized finance (DeFi), to rise to fame. The cashless options the space presented to many was a well-needed escape from unnecessary risks of contracting the virus. We have recently seen a boost in a lot of top coins as BTC and ETH reached new all-time highs.…

The Role of Commodity Futures Trading Commission (CFTC) in Regulating Cryptocurrency

The Commodity Futures Trading Commission (CFTC) is a US-based agency established by the Commodity Futures Trading Commission Act of 1974 for regulating the commodity futures and derivatives markets, including option markets, futures, and Swaps.  The commission's main goal is to promote futures markets' competitiveness and efficiency while protecting traders against unscrupulous activities, fraud, and abusive trade practices.  CFTC has five committees; Agriculture, Global markets, Technology, Energy & environmental markets, Coordination between the CFTC and SEC, each headed by a commissioner.…

Understanding SEC’s Classification of Crypto-assets: Securities or Commodities?

Cryptocurrency growth in the last decade has taken the technological world by storm, and with this growth came a lot of questions and concerns. The classification of cryptocurrency is, primarily, a chief concern. The subject is one that courts, government agencies, and even financial markets struggle to grasp.  The primary debate begs an answer to an essential question: are they securities, or are they commodities?  Cryptocurrency traverses local, national, regional, and international boundaries. Hence the need for classification is both…

CFTC Has Charged Three Individuals Who Allegedly Pocketed $15M Through Investment Scams

Two persons (Tal Valariola and Itay Barak) of Digital Platinum Limited (a marketing firm based in Israel) and another individual (Daniel Fingerhut) of All In Publishing (a marketing firm based in the U.S.) have been charged with options fraud and Commodity Trading Advisor fraud. Tal Valariola is the vice president of Digital Platinum while Itay Barak is the co-founder. The Commodity Futures Trading Commission (CFTC) charged the three individuals together because they allegedly worked together to swindle unsuspicious persons of money close to…

Facebook’s Libra Could Have Helped the U.S. Maintain Its Financial Superiority

The United States Federal Reserve plans to buy unlimited bond and also print dollar but do not appear to be going well. The country continues to experience a rising unemployment rate. Nonetheless, it appears that the cryptocurrency space has a solution to this challenge. Mark Yusko of Morgan Creek Capital spoke on a recent podcast, suggesting that a central bank digital currency (CBDC) may help with the plan of printing dollar bills. Yusko said CBDCs may help with faster distribution in…

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