KuCoin’s settlement with CFTC in flux after Trump policy shift
A settlement between the US Commodity Futures Trading Commission (CFTC) and crypto exchange KuCoin is likely delayed due to a policy shift at the CFTC that deprioritizes cases against crypto companies. CFTC attorney John Murphy requested more time to secure approval for a deal negotiated under the Biden administration, indicating that authorization may not be granted soon. The CFTC charged KuCoin with multiple violations of the Commodity Exchange Act in March 2024, while the Justice Department filed charges for Anti-Money Laundering violations, alleging the exchange handled over $5 billion in suspicious funds. KuCoin previously reached a $297 million settlement with the Justice Department and agreed to exit the US market for two years. The CFTC lacks a majority to dismiss or settle cases, complicating the situation. Both parties have requested an additional 60 days for definitive direction from the Commission. The CFTC is also seeking comments on perpetual contracts in derivatives markets to assess their potential uses and risks.
