The Commodity Futures Trading Commission (CFTC) calls Bitcoin (BTC), Ethereum (ETH), and USD Coin (USDC) commodities within the newest crypto fraud and misappropriation case. Tug-of-war continues between the U.S. CFTC and U.S. Securities and Exchange Commission (SEC) regarding which has jurisdiction over cryptocurrencies.
The SEC underneath Chair Gary Gensler continues its action against the crypto industry claiming that every one cryptocurrencies, besides Bitcoin, are securities. Meanwhile, CFTC underneath Rostin Behnam reasserts that some cryptocurrencies together with Bitcoin, Ethereum, and stablecoins reminiscent of USDC are commodities.
US CFTC Calls Bitcoin, Ethereum, USDC “Commodities”
The Commodity Futures Trading Commission filed a civil enforcement motion towards former Deutsche Bank funding banker Rashawn Russell within the U.S. District Court for the Eastern District of New York.
“Certain digital assets, such as bitcoin, ether, and USDC, are encompassed in the definition of a “commodity” underneath Section 1a(9) of the Act, 7 U.S.C. §1a(9), and contracts for his or her sale are topic to the prohibitions of Section 6(c)(1) of the Act, 7 U.S.C. § 9(1), and Regulation 180.1, 17 C.F.R. § 180.1 (2022).”
The CFTC fees Russell with digital asset buying and selling fund fraud and misappropriating at the very least $1 million in investor belongings. The CFTC seeks restitution, disgorgement, civil financial penalties, everlasting buying and selling and registration bans towards the defendant. As nicely as, a everlasting injunction towards additional violations of the Commodity Exchange Act (CEA) and different CFTC laws.
Russel assured at the very least a 25 % return on funding (RoI) and falsely promised that he would pay buyers in USDC stablecoin. He misappropriated $1 million in investor belongings to pay private bills, playing firms, and Ponzi-like funds to present buyers.
CFTC Director of Enforcement Ian McGinley asserts that the motion proves the CFTC is best at defending buyers and holding dangerous actors accountable for fraud within the crypto trade.
Recently, CFTC classified cryptocurrencies like Bitcoin, Ethereum, and Litecoin as commodities in a lawsuit filed towards Binance.
Also Read: Forget Ethereum (ETH), These Altcoins Gearing Up for Next Rally
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