Today in technology regulation, the Commodity Futures Trading Commission (CFTC) eyes cryptocurrency enforcement, while the United Kingdom’s financial regulator plans to use new powers to strip permissions from regulated companies that are not using them in an attempt to reduce fraud and scams. Plus, the Department of Justice (DOJ) antitrust chief warns buyout firms that the agency will increase its scrutiny over deals involving private equity firms.
CFTC’s Chair Signals More Crypto Enforcement and Oversight
Rostin Behnam, chairman of the Commodity Futures Trading Commission (CFTC), has participated in several events this week, reclaiming the position of his agency in the cryptocurrency space and suggesting that more enforcement actions are likely. Following the steps of the Securities and Exchange Commission (SEC), which is seeking to increase its resources in the Crypto Unit, Behnam said that the CFTC will also look to prioritize the use of its existing authority to deter and combat fraud and manipulation in the crypto markets and will continue to add resources in this area.
UK’s FCA Will Fight Fraud by Canceling Permissions in 28 Days
The U.K. Financial Conduct Authority (FCA) announced Thursday (May 19) that it will use new powers to more swiftly cancel or change which regulated activities firms are permitted to do. The regulator will be able to cancel any permission given to a regulated entity, or change it, 28 days after the first warning if the firm has not taken appropriate action. In essence, businesses will be required to prove they are carrying out the regulated activity they are permitted to or face losing this permission.
DOJ to Increase Antitrust Scrutiny Over Buyout Deals
Jonathan Kanter, head of the Department of Justice (DOJ) Antitrust Division, has warned buyout firms that they may be subject to tougher regulatory review if future deals have the potential to harm the American economy. The agency will pay closer attention to private equity’s role as a buyer of assets when other companies are ordered to divest, as such a solution often is less effecting than blocking the deal outright, Kanter argued. Another area on which the agency may focus, Kanter said, is “interlocking directorates” where executives from a buyout group sit on the boards of multiple, competing companies they own or control.
US Sens to Release Long-Awaited Crypto Legislation Next Week
Sen. Cynthia Lummis told an audience at an American Enterprise Institution forum Tuesday (May 17) that she is planning to release a long-sought crypto bill for discussion next week — and the formal bill could be introduced in Congress as soon as 30 days afterward. The proposed bill is long-awaited by the crypto community because, as the senator confirmed Tuesday, it will include some provisions defining whether a certain crypto asset is a security or a commodity and which agency will have oversight, either the SEC or the CFTC. Other provisions will cover consumer protection and taxation.
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