CFTC Charges Multiple Entities for False Claims of Registration

The CFTC charged multiple entities for falsely claiming to be registered with the CFTC and NFA in connection with commodities offerings. (See primary source links below.)

In separate Complaints, the CFTC alleged that the entities offered futures, options, forex and digital assets trading products on their websites. The CFTC stated that the entities attempted to create a "false perception of legitimacy" in advertisements by claiming to be CFTC-registered and NFA members, despite not being so registered.

The CFTC charged the entities with violations of CEA Section 6(c)(1) ("Application for designation as contract market or derivatives transaction execution facility; time; suspension or revocation of designation; hearing; review by court of appeals") and CFTC Rule 180.1(a)(1)-(3) ("Prohibition on the employment, or attempted employment, of manipulative and deceptive devices").

Statement

CFTC Commissioner Caroline D. Pham dissented, arguing that the CFTC should have filed the charges in federal court. She called the CFTC’s decision to file these cases as administrative proceedings a "shotgun approach" that "flies in the face of decades of Commission standard practice and rules . . .."