The CFTC found that Coinbase misbehaved over a three-year period, including the use of multiple trading programs traded together.
The US Commodity Futures Trading Commission (CFTC) released a press release on March 19 on the fines imposed on Coinbase. The CFTC fined the exchange $ 6.5 million. The reason for this was “unregistered false, misleading or false reporting as well as wash-trading by a former employee on Coinbase’s GDAX platform.”
CFTC announced that between January 2015 and September 2018, the company was engaged in trades that affected the market’s perception of pricing and volume on GDAX. Specifically, a series of transactions in August and September 2016 pumped the volume of activity related to the Litecoin / Bitcoin pair.
Here we go again
Coinbase previously caught the attention of the commission on margin trading in November 2020. As a result, the exchange closed its margin trading platform on November 25 and ceased functionality completely in December after open positions expired. Coinbase based its decision on the “latest guide” published by the commission in March 2020.
Binance and BitMEX next?
He previously reported that the CFTC is investigating Binance. In particular, the regulator wanted to know if US citizens were engaged in illegal derivatives trading. The CFTC is acting on a tip and has not yet filed any charges against Binance.
On October 1, 2020, the commission took BitMEX to the federal court. He claimed that BitMEX operated an unregistered trading platform, among other issues, including the failure to set up the required anti-money laundering (AML) procedures.
Biden Period Changes in CFTC
On January 21, 2021, Heath Tarbert resigned as head of the CFTC. President Biden chose Chris Brummer to replace him. However, Brummer was not approved by the US Senate. Meanwhile, Rostin Behnam is acting chairman.
Until approved, Brummer is the Profession and Faculty Director at the Georgetown University Institute for International Economic Law. Brummer’s research focuses on cryptocurrencies.
Definition of cryptocurrencies
In 2020, the CFTC ruled that cryptocurrencies are commodities rather than currencies. This could put it in conflict with other federal agencies. States also decide what currency is. For example, the State of New York has determined that XRP is a digital currency. However, the Securities and Exchange Commission (SEC) still sued for being a security. Brummer will actually need to identify the crypto once it’s approved.