Is the CFTC Outperforming the SEC In Keeping the Derivatives Markets Safe?
While regulations remain a big topic of discussion in the blockchain industry, the CFTC has proven itself to keep the industry safe.
Charges Settled Against bZeroX
Commodity Futures Trading Commission (CFTC) has settled charges against bZeroX, the predecessor of Ooki DAO. Charges were also filed against bZeroX founders Tom Bean and Kyle Kistner for selling leveraged and margin-based retail commodity transactions in digital assets without due approval.
As per the CFTC, bZeroX did not comply with existing regulations and did not conduct transactions on a regulated contract market. Further, The CFTC charged the company for not carrying out identification of its customers. Ooki DAO has been charged with similar offenses in the US.
However, the CFTC commissioner submitted a dissent note against the charges levied on Ooki DAO as they are broad and charge even DAO members and token holders with violations.
As per the CFTC statement, Summer K. Messinger submitted: “I cannot agree with the Commission’s approach of determining liability for DAO token holders based on their participation in governance voting for a number of reasons.”
The SEC Opts for a Different Approach
While the CFTC’s approach was lauded for acting against an unlawful offering of digital assets, the Securities and Exchange Commission (SEC) has been criticized for not doing enough to regulate these new investment instruments.
In an op-ed for the Wall Street Journal last month, SEC Chair Gary Gensler stated:
“There’s no reason to treat the crypto market differently from the rest of the capital markets just because it uses a different technology.”
Cryptocurrency experts have repeatedly pointed out the necessity for new and sympathetic regulations for the broader crypto market, arguing that digital assets represent new technology and existing laws are not enough to regulate the industry. However, the SEC has been carrying out litigation against cryptocurrency companies citing its securities laws.
The latest case in the news is the SEC against Ripple, the company behind XRP Token, one of the most popular cryptocurrencies. A similar case might also be filed against Ethereum after it made the shift to a Proof of Stake consensus mechanism.
The need for better regulations
CFTC commissioner, Caroline D. Pham echoed the sentiment of many cryptocurrency investors at the Messari Mainnet summit stating, “There is room at the table for both the CFTC and the SEC, but regulators need to remember that they are here to serve the people.”
Cryptocurrency experts have suggested a better approach by asking for more regulation rather than opting for enforcement through litigation.
Commissioner Summer K. Messinger suggested a better path saying, “The Commission should communicate to, and engage with, the public in a transparent manner and seek out the input of those with expertise to share.”
The SEC has found it difficult to prove charges against digital asset firms in the past and has instead opted to take the settlement approach after a time-consuming legal process. A similar case against KIK Interactive, the company behind the KIN cryptocurrency, was settled in October 2020. Regulation and better laws that level the playing field for all cryptocurrencies are the need of the hour but who will take the lead?
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This is a paid press release, BSC.News does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products, or other materials on this page. The project team has purchased this advertisement article for $2500. Readers should do their own research before taking any actions related to the company. BSC.News is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods, or services mentioned in the press release.
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Related News
A New Solana Memecoin With $19 Million: What is Milady Wif Hat?
Named after the renowned Solana meme coin Dogwifhat (WIF), Milady Wif Hat swiftly reached its maximum funding cap of 88,888 Solana (SOL) within hours of its launch.
Introduction: Milady Wif Hat
Milady Wif Hat, a new meme coin on the Solana network, has made waves by swiftly gathering $19 million in funding during its presale in just two hours. Named after the well-known Solana meme coin Dogwifhat (WIF), Milady Wif Hat garnered a maximum funding of 88,888 Solana (SOL).
🎩 Milady Wif Hat presale is now live! 🚀
— Milady (@miladymemecoin) March 18, 2024
Presale is live for the ever-fashionable SOL-loving Milady wif hat. Sending some love to the SOL community now 💗
Wallet address : 4K9tmyjpdu9ogw95JRTZkPkNppw8v1gnuGHBaYir96tt pic.twitter.com/1VdUjilB1E
With Milady Wif Hat, investors could participate with a minimum investment of 1 SOL, capped at 88,888 SOL. The presale, set for a 24-hour duration, saw an overwhelming response, becoming oversubscribed within hours of its launch.
📢 Closure of Milady wif hat presales! 🚀
— Milady (@miladymemecoin) March 18, 2024
Milady Wif Hat presale has soared to its limit of 88,888 SOL and is now closed. 🎉
Any additional Solana raised will have 100% of their funds returned.
Thank you all for the incredible support! 🙌 💖 pic.twitter.com/zEzDGEVlQy
Following the closure of the presale, additional contributions were reportedly returned.
Milady Origins
Milady memecoin's journey began as a decentralized meme token ($LADYS) on the Binance Smart Chain, debuting in 2022. Inspired by the internet meme culture surrounding "Milady" images, which exude grace and elegance, the project aims to infuse humor and lightheartedness into finance.
With a fixed total supply of 1 billion tokens, LADYS employs a deflationary mechanism, burning 10% of the initial supply to enhance scarcity. Furthermore, the tokenomics incorporate a 10% tax on transactions, with 5% redistributed to holders as rewards and the remaining 5% allocated to the liquidity pool, incentivizing long-term holding strategies.
Milady Wif Hat memecoin is the newest addition to the Milady ecosystem.
Challenges Along the Way
Despite its promising trajectory, Milady has faced challenges on its rise. Charlotte Fang, the founder of NFT projects Milady and Remilia, recently confirmed a security breach of treasury addresses, resulting in significant financial losses.
The transfer of ownership of the treasury to the drainer occurred before the suspicious transactions, according to PeckShield experts. Prior to this, in September 2023, Fang reported that the Milady NFT ecosystem developers had stolen about $1 million and hacked its social media accounts.
This is a paid press release, BSC.News does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products, or other materials on this page. The project team has purchased this advertisement article for $1500. Readers should do their own research before taking any actions related to the company. BSC.News is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods, or services mentioned in the press release.
This is a paid press release, BSC.News does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products, or other materials on this page. The project team has purchased this advertisement article for $2500. Readers should do their own research before taking any actions related to the company. BSC.News is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods, or services mentioned in the press release.
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