The CFTC aims to expand its authority over digital currencies to compete with the Securities and Exchange Commission (SEC) for a more significant market share in this industry. However, even though many people would assume that maintaining the CFTC as a watchdog would be far less harmful than having the SEC. Therefore, they might reconsider their position.
The CFTC Is Strict
CFTC announced on October 20 the publication of its Annual Implementation Results. It brags about making 25% of all disciplinary actions in the virtual currency industry alone.
According to the research findings, a total of 82 legal proceedings seeking enforcement were brought during the fiscal year 2022. And penalties totaling $2.6 billion were levied. Eighteen of them were connected to cryptocurrency.
Ross Benham, chairman of the CFTC, expressed his satisfaction with his organization’s work in a message to the press. He stated that:
“Despite extraordinary financial market circumstances directly affecting American customers. Innovative digital disruption and growing user investment participation. The CFTC accelerates its devotion to a sturdy policing program to ensure the market forces we supervise are open, clear, reasonable, and competitive.”
He focused his remarks on the digital assets industry in particular. This enforcement report for FY 2022 demonstrates that the CFTC is continuing its proactive approach.
It monitors emerging digital commodities asset markets using all the resources at its disposal. “I would like to extend my gratitude to the diligent and devoted management team and personnel of the Disciplinary Committee,”
Benham was quite proud of the fact that his organization had been able to collect $1.5 billion in penalties annually over the previous decade. He noted that this was a solid return on capital because the CFTC’s annual budget is $250 million.
A Brief Overview Of The CFTC’s Past
Those who want the CFTC to have a far larger voice in cryptocurrency might look at some other industries. In which the organization has regulatory power.
They needed only to look at the market for precious metals, where several experts regularly post how bigwigs are massively exploiting the diamond, gold, and other commodities markets. Yet, at the same time, the CFTC stands idly by and does nothing to stop it.
The Cryptocurrency Industry Has To Exercise Caution
The cryptocurrency market needs to be very aware of the continuous suppression of the whole sector. Any of the financial system’s technical innovation, as well as all companies whose primary goal is to continue the fiat currency system.
Prominent financial institutions and organizations worldwide can only perceive crypto through the lens of the system already in place. As a result, they begin from the standpoint of an adversary.
The only way this perspective is likely to shift is if an increasing number of people in the general public come to see the traditional banking system as it is. And begin to insist that policymakers carry out their responsibilities in a way that is both fair and productive.
