The United States Commodity Futures Trading Commission (CFTC) has filed charges against Gemini alleging that the exchange filed false or misleading statements relating to its bitcoin futures product.
The regulatory authority said that the New York-based exchange made “material false or misleading statements and omissions to the commission.”
The CFTC is seeking “disgorgement of ill-gotten gains, civil monetary penalties, injunctions relating to registration and trading, and an injunction against further violations of the Commodity Exchange Act (CEA).”
Gemini filed statements back in 2017
Gemini filed the statements in 2017, and the CFTC evaluated that the alleged misleading statements and omissions in question failed to accurately cover “whether the proposed Bitcoin Futures Contract would be readily susceptible to manipulation.”
Acting Director of Enforcement Gretchen Lowe said: “Making false or misleading statements to the CFTC in connection with a futures product certification undermines the CFTC’s work to ensure the financial integrity of all transactions subject to the CEA, protect market participants, deter and prevent price manipulation, and promote responsible innovation and fair competition. This enforcement action sends a strong message that the Commission will act to safeguard the integrity of the market oversight process.”
Authorities focus on rule breaches
The U.S. has recently stepped up its game with regard to crypto regulation.
It wants to end crypto’s perceived Wild West nature, and different regulators are handling various cases. This is expected to result in some form of regulation soon.
New York Attorney General Letitia James issued a warning about cryptocurrencies to investors recently, saying that volatility and hacks posed risks. This is the sentiment that many U.S. authorities are holding, though they have stopped short of imposing any dramatic rule changes.
The CFTC, among others, has asked for increased authority to regulate the market.
The U.S. has made it clear that crypto will not be allowed to operate without oversight. The question is what these authorities can do to ensure that decentralized platforms are compliant.
New York Attorney General Letitia James also issued a warning about cryptocurrencies to investors recently, saying that volatility and hacks posed risks. This is the sentiment that many U.S. authorities are holding, though they have stopped short of imposing any dramatic rule changes. The CFTC, among others, has asked for increased authority to regulate the market.
As such, the market may see some more significant regulatory shifts in the months to come. The U.S. has made it clear that crypto will not be allowed to operate without oversight. The question is what these authorities can do to ensure that decentralized platforms are compliant.
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