CFTC plans to increase enforcement of cryptocurrencies

CFTC planeta

The Commodity Futures Trading Commission (CFTC) hinted that it plans to increase enforcement and its resources to combat a growing number of cases of fraud and manipulation of digital assets. Throughout these past few years there have been some NFT projects and altcoins (an altcoin is any cryptocurrency other than Bitcoin or Ethereum), which seemed to be very ambitious and with a lot of potential and have ended up being a scam by the developers. The moment the price has risen they get rid of all their coins and pull the price taking it to 0. This practice is called rug-pull.

The large number of scams has generated distrust in the cryptocurrency community because it has become common for some cryptocurrency projects to turn out to be scams and those responsible for this face no repercussions and walk away with the stolen money.

CFTC Chairman Rostin Benham told a conference that the agency has filed more than 50 enforcement actions related to digital asset activity since 2015, and half of them are related to fraud. There has also been talk that it should not be the CFTC that will police digital asset fraud and manipulation cases, but the Security Exchange Commission (SEC), the same commission that oversees stock market activity.

This would be beneficial for companies because they would be regulated and supervised in the same way as public companies and this would level the playing field and give more security and more respect to the crypto space.

Also, for crypto and NFT holders it is beneficial because at least they are guaranteed that developers who launch scams will be prosecuted. This will also make the cryptocurrency market a safer place, where there are no shady projects.

Finally, the fact that the world of cryptocurrencies will be regulated is beneficial for everyone and the government starting to get involved is a positive step towards the future.

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