"Five Democratic senators said they are 'deeply concerned' that the agency's Central Regional Office in Chicago has shrunk from 20 enforcement attorneys to none. They warned that if those numbers are correct, the pullback would undercut one of the CFTC's most critical enforcement centers."
"Congress created the CFTC in 1974 to police U.S. derivatives markets. Its Division of Enforcement brings cases involving fraud, insider trading, market manipulation and false reporting under the Commodity Exchange Act. For years, the Chicago office has been at the heart of that effort, handling complex investigations tied to futures, commodities and, more recently, crypto markets."
"The team reportedly helped deliver some of the agency's most eye-catching results. In 2023, the CFTC won a $2.7 billion penalty against Binance along with a $150 million civil penalty against its CEO. A year later, it ordered the collapsed crypto exchange FTX to pay $12.7 billion in relief to victims."
Five Democratic senators expressed deep concern about a dramatic reduction in the CFTC's Chicago enforcement office, which reportedly decreased from 20 enforcement attorneys to none through departures, retirements, and internal transfers. The Chicago office has historically been central to the CFTC's enforcement mission, handling complex investigations involving futures, commodities, and cryptocurrency markets. The senators highlighted the office's significant achievements, including a $2.7 billion penalty against Binance in 2023 and a $12.7 billion relief order against FTX. They argue that experienced trial lawyers are essential for effective derivatives market regulation and requested clarification from CFTC Chairman Michael Selig regarding staffing changes and their impact on enforcement capabilities.
#cftc-enforcement #derivatives-regulation #chicago-office-staffing #cryptocurrency-oversight #congressional-oversight
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