The U.S. CFTC's action against the DAO has shaken up the crypto industry. Who's next? | Crypto

The U.S. CFTC’s action against the DAO has shaken up the crypto industry. Who’s next?

– The U.S. Commodity Futures Trading Commission (CFTC) has issued an order to both file and settle charges against tokenized margin trading platform bZerox LLC (bZx) and its founders Tom Bean (Bean) and Kyle Kistner (Kistner).
– The charges include illegally offering leveraged and margined retail commodity transactions in digital assets; engaging in activities only registered futures commission merchants (FCMs) can perform; and failing to adopt a customer identification program as part of a Bank Secrecy Act compliance program since 2019.
– The CFTC also opened a federal civil enforcement action in the U.S. District Court for the Northern District of California charging the Ooki DAO – the DAO that took over management of bZx from the founders in August 2021 – with the same crimes.
– CFTC Commissioner Summer K. Mersinger published a dissenting statement remarking that the commission does not have the legal authority to enforce liability on DAO token holders based on their participation in governance voting.
– The executive vice president and head of policy at the Blockchain Association, Jake Chervinsky called the action the most egregious example of regulation by enforcement in the history of crypto.

webp net resizeimage The U.S. CFTC's action against the DAO has shaken up the crypto industry. Who's next?

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