PANews reported on February 5 that according to CoinDesk, Caroline Pham, acting chairman of the U.S. Commodity Futures Trading Commission (CFTC), said on Tuesday that the regulator has reorganized its law enforcement department to "refocus" on combating fraud and "stop regulating through law enforcement."
Previously, under the leadership of former CFTC Chairman Rostin Behnam, the CFTC's Enforcement Division had several working groups, including one focused on insider trading, one focused on cybersecurity and emerging technologies, and one aimed at combating environmental fraud. The reorganization reduces the number of working groups to two. The newly established "Complex Fraud Working Group" is responsible for handling enforcement of complex fraud and manipulation in all asset classes, from preliminary investigations to litigation. Deputy Director of Enforcement Paul Hayeck will serve as the acting head of the Complex Fraud Working Group. The "Retail Fraud and General Enforcement Working Group" will be responsible for handling retail fraud and general enforcement matters, and will be led by Charles Marvine, who also serves as Deputy Director of Enforcement.
“This streamlined structure will stop regulating through enforcement and increase efficiency,” Pham said in a press statement. “These much-needed reforms will maximize the CFTC’s resources to take more action against fraudsters and other bad actors, rather than punishing law-abiding citizens.” According to the CFTC’s announcement, the new structure will “more efficiently utilize CFTC resources to prevent fraudulent, manipulative, and abusive conduct and ensure market integrity,” while also “providing enhanced governance and oversight of enforcement matters to prevent over-enforcement and enhance consistency, fairness, and due process.”
