The eagerly anticipated Senate Committee’s meeting with CFTC and SEC will be discussing the regulations on cryptocurrency. However, both the agencies have been in the picture for a long time and have taken strict actions against some big investors. Another factor worth mentioning here is the huge reduction in the bitcoin trading volume in past one month.
CFTC and SEC have already been in the Bitcoin regulation game
As we reported yesterday, today CFTC (Commodity Futures Trading Commission) and SEC (Securities and Exchange Commission) in a meeting with Senate Committee are going to discuss their oversight roles in virtual currencies. This has put a lot of strain on the crypto market as well as the crypto investors. However, neither of the agencies aren’t new to the crypto market.
On May 7, 2014, SEC posted a note on their official website entitled “Investor Alert: Bitcoin and other virtual currency-related investments” that explains bitcoin and warns investors of high-risks involved in bitcoin investment.
On September 21, 2017, CFTC filed an anti-fraud enforcement action that involved misappropriation, issuing false account statements and fraudulent solicitation in Bitcoin Ponzi scheme against Nicholas Gelfman (Brooklyn, New York) and Gelfman Blueprint Inc (New York).
On January 18, CFTC charged Colorado Resident Dillion Michael Dean and his (the UK registered) company, The Entrepreneur Headquarters Limited, for engaging in a fraudulent scheme to solicit Bitcoin from the public and investing them in binary options.
