A senior U.S. regulator indicated that enforcement actions against crypto companies might have reached a peak following Binance’s $4.3 billion settlement last month. The settlement, orchestrated by the Justice Department, addressed violations of U.S. anti-money laundering and sanctions laws with the Commodity Futures Trading Commission (CFTC) and the Treasury Department.
According to CFTC Commissioner Kristin Johnson, these cases against firms like Binance have set precedents, establishing guidelines for governance within the crypto market. She highlighted the hope that these initial cases serve as a cautionary lesson for firms aiming to operate successfully in this domain.
Johnson emphasized the importance for crypto firms to closely examine the Binance settlement to understand the regulatory expectations around governance. She encouraged these companies to follow the established templates for successful operation in this space.
Additionally, the CFTC intends to focus on enhancing disclosures, especially for vertically integrated crypto firms that integrate various activities under one umbrella.
