Quick Summary
The three hundred million dollar settlement between KuCoin and the CFTC has been stalled.
Crypto supervision is also being affected by the regulatory shifts brought in by the administration of President Trump.
The CFTC and the SEC are experiencing leadership and policy transition.
The new strategy of the CFTC allows abandoning regulation-by-enforcement and shift to more strategic moves.
Paul Atkins, who is regarded as pro-crypto is the new SEC chair.
KuCoin-CFTC deal held up by Trump-Era Shakeup
Cryptocurrency exchange KuCoin was unable to close a huge settlement with the Commodity Futures Trading Commission (CFTC) of the U.S., which exceeded the amount of 300 million dollars, as the licensing and authorization processes by regulators stagnate because of the extensive policy changes by the Trump administration.
According to an April 21 report by Law360, one of the CFTC lawyers asked a New York federal court for additional time, which the law admits to taking place in were it to get the required approvals. This follows following months after KuCoin and its founders were slapped with claims of being guilty of breaching the Bank Secrecy law and operating an unlicensed money transmittal business.
New Faces, New Rules: The New Look of Crypto Oversight
The hold-up comes at a crucial pivot point with crypto regulation in the United States. According to the recent letter issued by the CFTC Acting Chair Caroline Pham, the direction to move beyond so-called regulating-by-enforcement to target actual bad actors instead of penalizing those who do not is being undertaken.
On the one hand, at the same time, the new head of the Securities and Exchange Commission (SEC), Paul Atkins, who has already declared himself crypto-friendly, has officially assumed leadership in the agency. Perhaps this will lead to changes in regulatory practices by becoming less strict or more straightforward about blockchain-related companies.
The Implication of This to the Crypto World
Although this shakeup might temporarily lead to anxieties, it might also set the basis of a more reasonable and transparent regulatory domain on a long-term perspective. The message to KuCoin and other players that aren t in centralized exchanges is clear: compliance will still be central, but maybe there is a better way to play to the game.