Acting CFTC Chairman Caroline D. Pham says there will be no more “regulation by enforcement.” This term has been widely utilized to describe regulatory activity in financial services during the Biden Administration. More specifically, the rise of digital assets created policy hysteria with the government. As opposed to crafting rules that provide regulatory clarity financial regulators took a shortcut by pursuing enforcement actions – frequently without any claims of deeds that harmed the public.
Pham, a Republican, said the Commodity Futures Trading Commission, Division of Enforcement will now focus on combating fraud and helping victims of crime.
“The CFTC is strengthening its enforcement program to focus on victims of fraud, as well as remaining vigilant for other violations of law. This simplified structure will stop regulation by enforcement and is more efficient. These much-needed changes will maximize the CFTC’s resources to bring more actions to pursue fraudsters and other bad actors, and not punish good citizens. I commend the Division of Enforcement for upholding the CFTC’s mission to protect the American public,” stated Pham.
Fraudsters constantly adapt to changing environments, noted Brian Young, CFTC Acting Director of Enforcement. Young said the realignment will improve their enforcement program.
The CFTC said that previous task forces will be simplified into two new Division of Enforcement task forces: the Complex Fraud Task Force and the Retail Fraud and General Enforcement Task Force.
The new structure is expected to better utilize staff expertise to prevent fraud.
