The United States Commodity Futures Trading Commission (CFTC) has filed an allegation against Gemini that the exchange recorded false or misleading statements relating to its bitcoin futures product.
The regulatory authority said the New York-based exchange made “material false or misleading statements and omissions of the Commission”.
The CFTC is seeking an injunction against “wrongful profit, civil monetary penalties, injunctions relating to registration and trading, and further violations of the Commodity Exchange Act (CEA).”
Gemini filed statement in 2017
Gemini filed the statement in 2017, and the CFTC assessed that the alleged misleading statements and omissions failed to cover up “whether the proposed bitcoin futures contract would be easily susceptible to manipulation.”
Enforcement Director Gretchen Lowe said: “Making false or misleading statements to the CFTC regarding future product certification impairs the work of the CFTC to ensure the financial integrity of all transactions subject to the CEA, protect market participants, prevent and prevent price manipulation.” , and promote responsible innovation and fair competition. This enforcement action sends a strong message that the Commission will act to protect the integrity of the market oversight process.”
Officials focus on rule violations
The US has recently upped its game with regards to crypto regulation.
It seeks to end the perceived Wild West nature of crypto, and with different regulators handling different matters. Some form of regulation is expected from this soon.
New York Attorney General Letitia James recently issued a warning to investors about cryptocurrencies, saying that volatility and hacking pose risks. It is a sentiment that many US officials are holding, though they have held off on implementing any dramatic rule changes.
The CFTC, among others, has asked for increased authority to regulate the market.
The US has made it clear that crypto will not be allowed to operate without surveillance. The question is what can these authorities do to ensure that decentralized platforms are compliant.
New York Attorney General Letitia James also recently issued a warning to investors about cryptocurrencies, saying volatility and hacking pose risks. It is a sentiment that many US officials are holding, though they have held off on implementing any dramatic rule changes. The CFTC, among others, has asked for increased authority to regulate the market.
In such a situation, some more important regulatory changes can be seen in the market in the coming months. The US has made it clear that crypto will not be allowed to operate without surveillance. The question is what can these authorities do to ensure that decentralized platforms are compliant.
