The US Commodity Futures Trading Commission (CFTC) acting President Caroline Pham said Tuesday that the regulatory agency has reorganized its enforcement department to “refill” on fraud and “stop regulation by enforcement.”
Under the former chairman Rostin Behnam, CFTC’s Department of Enforcement Department had a number of tasks, including one who focused on insider trading, another focused on cyber security and new technologies and a third aimed at fighting environmental fraud. The new reorganization is dragging the number of tasks forces down to only two.
The newly created complex fraud assignment is tasked with dealing with enforcement, from preliminary investigations to litigation, complex fraud and manipulation across all asset classes. Paul Hayeck, Deputy CEO of the Enforcement Department, will be the complex fraud Taskforce’s acting boss. Detail fraud and Task Force for general enforcement will handle retail fraud and general enforcement and will be led by Charles Marvine, also Deputy Director of the Agency’s Enforcement Department.
“This simplified structure stops regulation by enforcement and is more effective,” Pham said in a press release. “These much -needed changes maximize CFTC’s resources to bring more actions to pursue scammers and other bad actors and not punish good citizens.”
According to CFTC’s announcement, the new structure “More Effectively Use CFTC’s resources to prevent fraud, manipulation and abuse and secure market integrity” as well as “provide improved governance and monitoring of enforcement issues to prevent overreaction and improvement proper process.”
CFTC’s rejection of the so-called regulation by enforcement strategy, which is pursued under the Biden administration, repeats the ongoing face at the US Securities and Exchange Commission, CFTC’s sister-regulating agency. Under the current acting chairman Mark Uyeda, SEC has created a crypto -tab force and rejected the agency’s previous strategy for regulation by enforcement under former chairman Gary Gensler.
Read more: SEC commissioner Hester Peirce establishes 10 priorities for New Crypto Task Force
