The US regulator CFTC has designated the top 3 cryptocurrencies in the market as securities in a new lawsuit filing. These statements clash with the SEC led by Gary Gensler and it looks like the bickering will continue…
US regulators face off over cryptocurrency securities
In its latest crypto fraud case, the US Commodity Futures Trading Commission (CFTC) has labeled Bitcoin (BTC), Ethereum (ETH), and USD Coin (USDC) as commodities. On the contrary, another US regulator, the SEC, headed by Gary Gensler, says that Bitcoin is not a security. With the latest lawsuit, contention continues between the two regulators.
The SEC favors classifying all cryptocurrencies as securities, except Bitcoin. On the other hand, the CFTC led by Rostin Behnam re-emphasizes that some stablecoins such as Bitcoin, Ethereum and USDC are commodities.
CFTC defines Bitcoin, Ethereum and USDC as “commodities”
On April 11, civil criminal proceedings were initiated in the US Federal Court for the Eastern District against Deutsche Bank former investment banker Rashawn Russell. In the lawsuit, the market describes the largest volumes as Bitcoin, Ethereum and USDC as “commodities”.
The CFTC is accusing Russell of digital trading fund fraud and misappropriation of at least $1 million in investor funds. The US regulator is seeking damages, refunds, fines, permanent trade and registration ban against the defendant. It also seeks a permanent ban on violations of the Commodity Exchange Act (CEA) and other CFTC regulations.
Contention focused on Rashawn Russell’s crypto funds
Russell was offering a fund with a minimum 25% return on investment (RoI) that he promised to pay in USDC. He misused $1 million of investor assets to pay his investors Ponzi-like payments, personal expenses, and gambling companies.
CFTC Executive Director Ian McGinley claims that the latest lawsuit proves that the CFTC is better at protecting investors and holding criminals accountable for fraud in the crypto industry. Recently, the CFTC classified cryptocurrencies such as Bitcoin, Ethereum, and Litecoin as commodities as part of a lawsuit against Binance.
Binance case
cryptocoin.com As we have reported, the CFTC has filed a lawsuit accusing Binance of misleading US investors during its transactions. The CFTC claims that Binance provides misleading and incomplete information when offering futures contracts. It is also suggested that Binance has not registered to operate in the US, but still serves US investors.
The lawsuit came amid the CFTC’s attempts to regulate cryptocurrencies more tightly and shows that more pressure may be put on crypto exchanges to ensure compliance with US law.
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