A futures commission merchant settled CFTC charges for supervisory failures concerning the handling of customer accounts "by not adequately preparing and configuring its electronic trading system" before a negative futures price event affecting sweet crude oil futures contracts.
CFTC Commissioner Stump outlined the agency's regulatory and enforcement authority with respect to digital assets. Commissioner Stump noted the proliferation of digital assets has resulted in the "grossly inaccurate oversimplification" that such assets are either SEC-regulated securities or CFTC-regulated commodities.
The SEC charged five individuals with trading on material non-public information related to a subscription video streaming service's subscriber growth. The scheme involved three former employees who worked as software engineers and two closely associated individuals.
A derivative exchange specializing in the trading of products based on virtual currencies settled CFTC and FinCEN charges for operating as an unregistered futures commission merchant and for Bank Secrecy Act violations.
The U.S. House Financial Services Subcommittee on Consumer Protection and Financial Institutions held a hearing to consider proposed legislation on novel financial institution charters such as industrial loan companies, as well as state charters and licenses for cryptocurrency and blockchain firms.