CFTC commissioner says her agency’s lawsuit against KuCoin may infringe on SEC authority

Home / CFTC commissioner says her agency’s lawsuit against KuCoin may infringe on SEC authority

Commodity Futures Trading Commission (CFTC) Commissioner Caroline Pham said her agency’s action against KuCoin could infringe on the authority of the Securities and Exchange Commission (SEC).

Pham said the two agencies have been unable to reach a consensus on how to classify digital assets and have been publicly divided in their opinions.

The CFTC alleges KuCoin violated the Commodity Exchange Act, while the SEC calls similar offenses a violation of the Securities

Act.
Pham noted that this interpretation fails to distinguish between investments in funds (which the SEC regulates) and a fund’s trading activities (which the CFTC regulates).

“The CFTC’s approach could impinge on the SEC’s authority and undermine decades of robust investor protection laws by conflating a financial instrument with a financial activity, undermining the fundamentals of the securities markets. Owning stocks is not the same as trading derivatives,” she added.

Leave a Reply

Your email address will not be published.