Once again, a US regulator came into the spotlight after it was announced that it had gathered over $15 billion in 2024 from penalties, and other settlement agreements. As per a recent piece of information, the Commodity and Future Trade Commission has reportedly collected $17. 1 billion in penalties, restitution, and disgorgement.
The notable settlement of CFTC with the FTX was worth a $12.7 billion settlement, making it one of the most prominent in the history of the crypto market.
It is worth noting the case of Binance and its executives like the former chief executive officer of Binance and Samuel Lim.
In the case of Terra Luna, the CFTC has played a primary role in protecting investors and reportedly collected billions in penalties.
Several published reports underscore that the United States regulators collect nearly over $10 billion in penalties from different industries.
Available information notes that the CFTC recovered $1.35 billion in civil penalties from Binance with $1.35 billion more disgorgement.
After the announcement, the chairman Rostin Behnam, said: “The CFTC remains steadfast in its duties to protect customers and vigorously oversee CFTC-regulated markets critical to the health of the U.S. economy.”
Did the SEC collect more penalties than the CFTC?
Not only in the United States but also in other parts of the world the US SEC has gathered huge attention as it is one of the most prominent regulatory commissions which has been in the spotlight from the initial days of the crypto market.
As per a piece of information on November 20, 2024, the Securities and Exchange Commission of the United States has 583 enforcement actions with a total penalty collection of $8.2 billion. Yet the amount collected by the CFTC has become a major topic to discuss in the vast crypto market.
Some experts argue that, in the coming months the collection of penalties and filing of lawsuits is expected to fall especially for the crypto market as the commission is expected to get its new chairman who might favor the growth of digital assets.
The growing price, adoption, and market capitalization of cryptocurrencies have lured millions of new investors and billions in fresh funding. Despite back-to-back crackdowns from regulators and enforcement agencies the cryptocurrency market continued to grow at an appreciable pace reaching new heights.
It is further expected that it will grow to new heights and there are high chances that it might shape a new perspective of enthusiasts and others over digital currencies.
Conversely, if regulators resist the pressure, it could result in stricter regulations on cryptocurrencies. This may slow down the pace of innovation and discourage broader participation in the crypto market.
The debate highlights the importance of ensuring that digital asset regulations are both current and effective.
Therefore, regulators must establish clear and verifiable definitions, particularly for start-ups, to foster innovation in the digital asset space while ensuring investor protection is not compromised.
