Under Acting Chair Caroline Pham, the CFTC moves away from regulation by enforcement, focusing on retail and complex fraud cases.
CFTC Charges Rashawn Russell in Crypto Fraud Case
The U.S. Commodity Futures Trading Commission (CFTC) has charged New York resident Rashawn Russell with misappropriating $1.5 million in a fraudulent crypto trading scheme between 2020 and 2022. Russell, who guaranteed investors a 25% minimum return, has pleaded guilty to wire fraud. Acting Chair Caroline Pham announced on Feb. 4 that the CFTC would restructure its Division of Enforcement, creating two task forces: retail fraud and complex fraud & manipulation.
CFTC’s Changing Crypto Stance
Pham’s approach suggests a less aggressive stance on crypto firms, shifting away from regulation by enforcement. This follows the departure of former Chair Rostin Behnam and the election of President Trump, who is expected to nominate a new commissioner.
SEC’s Crypto Regulation Moves
While the CFTC refocuses on fraud, the SEC has formed a crypto task force to develop a regulatory framework, with Trump-appointee Mark Uyeda as acting SEC chair until the Senate confirms a permanent replacement.
What’s Next for Crypto Regulation?
With over $17 billion in monetary relief reported by the CFTC in 2024, new leadership at both agencies could reshape crypto regulation in 2025.
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