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CFTC doesn't have jurisdiction over this. They only regulate derivatives and verrrry limited authority over spot market activity that affects derivatives. As t
by vmception 6y ago
CFTC doesn't have jurisdiction over this. They only regulate derivatives and verrrry limited authority over spot market activity that affects derivatives.
As this is in coordination with DOJ and the SEC, this is just tacked on to see what sticks.
I don't see the securities fraud (SEC) or the commodities fraud (CFTC) sticking. Therefore, I don't see the money laundering or wire fraud or the associated conspiracy charges sticking either. Unless they traded Greyscale ETFs or some other unregistered security, which would be a dumb and illiquid way to trade fairly liquid spot assets.
The spot markets are regulated like products. So this is a FTC issue, too bad they have no teeth. But the FTC knows what digital assets are too.
- VHRanger 6y agoNY supreme court ruled that tether was covered under commodities law last year, so CFTC can have it stick. Crypto is either a commodity, or a security. It's not outside the law
- vmception 6y agoCFTC is a federal agency, they regulate commodity derivatives, not commodities, a New York court doesn't evolve the case law for a federal agency. And none of this has anything to do with "crypto being recognized as a particular asset class". Nobody is arguing about the CFTC saying crypto is a commodity, the CFTC has limited powers in what they can do with something being a commodity because they regulate commodity derivatives. here is something that shows the current state of the CFTC's authority being unresolved by federal courts, specifically regarding spot commodities https://www.skadden.com/insights/publications/2018/10/recent-court-decisions-shine-spotlight https://www.skadden.com/insights/publications/2018/10/recent...
- wmf 6y agoCFTC has had jurisdiction over crypto for a while but if anyone was going to challenge that I could imagine McAfee being the one.
- vmception 6y agothat's not the point, the CFTC still has limited authority even if it declares something to be under its authority. here is something that shows the current state of the CFTC's authority being unresolved by federal courts, specifically regarding spot commodities https://www.skadden.com/insights/publications/2018/10/recent-court-decisions-shine-spotlight https://www.skadden.com/insights/publications/2018/10/recent...