CFTC looks at expanded authority to regulate crypto, for less than a 10% budget increase

CFTC looks at expanded authority to regulate crypto, for less than a 10% budget increase

The U.S. Commodity Futures Trading Commission, or CFTC, has released its Fiscal Year 2023 (FY2023) budget request, seeking $365 million. This marks a 9.9% increase over the previous year and 20% over FY2021. The commission regulates the country’s derivatives market and has been increasingly active in recent years in policing financial products that incorporate cryptocurrencies. 

According to the agency’s request document, the CFTC focuses on digital asset custodian risk, ensuring secure storage, as well as on accounting. The agency has its own staff of certified public accountants due to the lack of guidance on digital asset accounting from sectoral oversight bodies. In addition, the agency ensures derivative clearing organizations “employ strong segregation of duty processes and procedures to safeguard against theft of the collateral from [their] employees,” and it has extensive plans to increase educational efforts.

Our top trading bots

The request was more modest than what commissioner Rostin Behnam had been angling for. He told the Senate Agriculture Committee in February that his agency needed an additional $100 million and additional authority to regulate Bitcoin (BTC) and Ethereum (ETH), the cryptocurrencies the government treats as commodities.

The CFTC now depends heavily on whistleblowers in its enforcement efforts. Behnam told a Futures Industry Association audience this month that the agency had received over 600 tips since October, of which “a large number allege cryptocurrency fraud, such as pump-and-dump schemes, refusals to honor requests to withdraw money, and romance scams.” The agency announced a $10 million whistleblower award on March 18.

It seems likely the agency will receive more authority in the arena of digital assets. Senators Cynthia Lummis and Kristen Gillibrand have indicated that their bill on cryptocurrency regulation, when it is introduced, will include a prominent role for the CFTC, and a recent Government Accountability Office (GAO) report commented on the agency’s limited authority.

The president’s FY2023 budget, announced Monday, foresees generating $11 billion in revenue over the next decade by modernizing therules relating to digital assets.

Read on here Cointelegraph
Terraform Labs donates $1.1B for Luna Foundation Guard's reserves
On Friday, Do Kwon, founder and CEO of Terraform Labs (TFL), which develops the blockchain ecosystem consisting of Terra Luna (LUNA) and the TerraUSD stablecoin...
Rune’s upcoming mainnet launch and Terra (LUNA) integration set off a 74% rally
2021 was a roller coaster of a year for THORChain (RUNE), which saw its price top out at $20.31 only to come crashing down below $4 as a series of hacks...
China’s Supreme Court adds digital currency to list of illegal fundraising methods
China’s hardline policy on crypto took another turn on Thursday as the country’s Supreme Court revised its judicial interpretation for illegal fundraising...
Reports Bored Ape creator in funding talks with A16z at $5B valuation
Silicon Valley tech VC Andreessen Horowitz (A16z) is reportedly eying an investment in Bored Ape Yacht Club creator Yuga Labs, with a reported valuation...
How can the Metaverse help the food industry?
Cryptocurrencies and the food industry might not seem like the most intuitive pairing — one based in the digital realm and the other firmly rooted in the...
Don’t mention ‘K’ country: Bitcoin Magazine's YouTube restored after ban
Bitcoin Magazine’s YouTube channel was restored around three hours after being shut down, with the publication attributing the short ban to the YouTube...
REN price at risk of 50% drop after a bearish trading pattern shows up
The prospects of Ren (REN) continuing its ongoing rebound to fresh highs appear slim as a classic bearish reversal pattern begins to emerge.Dubbed head...
This simple Bitcoin options strategy lets traders profit while also hedging their bets
For traders who are undecided on Bitcoin's (BTC) move, the "long condor with call options," or the "iron condor" options strategy, yields optimal results...
Vitalik Buterin proposes calldata limit per block to lower ETH gas costs
Ethereum (ETH) co-founder Vitalik Buterin has proposed a new limit on the total transaction calldata in a block to decrease the overall transaction calldata...
New York businesses ask governor to deny permits for crypto mining
The New York State Governor Kathy Hochul has been asked by a group of local businesses to deny permits for converting the city’s old fossil-fuel power plants...
Swedish gov’t pays out $1.5M in Bitcoin to convicted drug dealer
The Swedish government has found itself in the unforeseen situation of paying out around $1.5 million worth of Bitcoin (BTC) to a convicted — and then jailed...
Upgrades, ESG, DeFi usage to help ether outpace bitcoin: Pantera Capital
By Lisa Pauline Mattackal(Reuters) - The Ethereum platform's potential applications, lower environmental impact and technical upgrades are likely to help...
Theta and Theta Fuel (TFUEL) soar ahead of June 30 mainnet launch
Major protocol upgrades can play a significant role in altcoin rallies regardless of the state of the wider cryptocurrency market because new features excite...
Turkish government to track crypto transactions over $1,200
Crypto exchanges with a presence in Turkey must now inform the Financial Crimes Investigation Board, or MASAK, about any crypto transactions over 10,000...
Bahamas' Sand Dollar nears commercial rollout as interoperability completed
The Central Bank of the Bahamas has announced that its central bank digital currency, the Sand Dollar, is expected to achieve full interoperability between...