A planned negotiation between the US Commodity Futures Trading Commission and Crypto Exchange Kucoin is likely to be delayed after a CFTC policy transfer to reduce cases against crypto companies under the Trump administration.
CFTC attorney John Murphy submitted a letter on April 21 to District Judge Valerie Caproni, asking for more time to ensure approval for a deal agreed upon under the Biden Administration, reported Law360.
“It does not seem unlikely that such permission will be given to the near term,” he said, referring to a recent statement by the CFTC chair Caroline Pham’s estimation that the agency’s implementation division is Deprioritize cases against crypto companies.
The CFTC charged kucoin with “many violations of the Commodity Exchange Act (CEA) and CFTC Regulations” in March 2024.
According to the Justice Department, who also filed charges against Kucoin and two founders for violating anti-money laundering laws, the exchange received more than $ 5 billion and sent more than $ 4 billion in “suspicious and criminal funds.”
KucoinTrade under Mek Global Limited, reached a $ 297 million Remote The January Department of Justice was with the January and Sumang Layong to get out of the US market for at least two years.
In December, the CFTC and Kucoin informed the court that they reached an agreement on principle to improve the case, however the terms and details of the suggested deal were not disclosed.
In March, Kucoin Question The judge for a 14-day stay to meet further negotiations in accordance with President Trump’s executive order that prevents implementation actions against the digital asset industry. However, this request was rejected, with the judge pressing for updates on the negotiation status.
There is no majority of CFTC
When the Pham announced in February that the commission would lower regulation by implementation, he also noted that the end of active cases would be more difficult to deal with.
The CFTC requires a predominantly to remove a case or allow its negotiations, and there is currently no major, with two members from each party sitting in the body.
This can change if the Senate confirms Trump’s nominee’s nominee Brian Quintenz to rule over the financial regulator.
Both parties request an additional 60 days or until the commission provides a “specific direction” in this regard.
Related: US FDIC and CFTC regulators are easy crypto restrictions for banks, derivatives
On April 21, the CFTC divisions of market administration released a request for comment To better inform them of potential uses, benefits, and risks of eternal contracts in the derivatives markets.
“Innovation and New Technology have created a Renaissance in markets that present new opportunities to access to more people, as well as risks,” Pham said.
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