🤓 CFTC Commissioner stated that her agency's lawsuit against KuCoin may infringe upon the SEC's powers

Commodity Futures Trading Commission (CFTC) Commissioner Caroline Pham stated that her agency's actions against KuCoin might infringe upon the powers of the Securities and Exchange Commission (SEC).

Pham noted that both agencies have failed to reach a consensus on how to classify digital assets and have publicly diverged in opinions.

The CFTC claims that KuCoin violated the Commodity Exchange Act, while the SEC calls similar crimes violations of the Securities Act.

Pham pointed out that such interpretation does not allow distinguishing between investments in funds (regulated by the SEC) and the trading activity of a fund (regulated by the CFTC).

"The CFTC's approach could infringe upon the SEC's authority and undermine decades of reliable investor protection laws by conflating a financial instrument with financial activity, undermining the foundations of the securities markets. Owning stocks is not the same as trading derivatives," she added.