A planned settlement between the US Commodity Futures Trading Commission and crypto exchange KuCoin is likely to face delays following a policy shift under the Trump administration to deprioritize cases against crypto companies. CFTC attorney John Murphy requested more time to secure approval for a deal negotiated under the Biden administration, as reported by Law360. The CFTC charged KuCoin with multiple violations of the Commodity Exchange Act (CEA) and CFTC regulations in March 2024, alongside charges for violating Anti-Money Laundering laws. KuCoin, operating under Mek Global Limited, previously settled with the Department of Justice for $297 million and agreed to exit the US market for at least two years. The court was informed of an agreement in principle for settlement between KuCoin and the CFTC in December, although the terms were not disclosed. The CFTC requires a majority to dismiss a case or authorize a settlement, but with no current majority, negotiations are stalled. Confirmation of Trump nominee Brian Quintenz to lead the financial regulator could potentially resolve the issue. In a separate development, on April 21, the CFTC’s Divisions of Market Oversight sought public input on the uses, benefits, and risks of perpetual contracts in derivatives markets. Acting CFTC Chair Caroline Pham emphasized the opportunities and risks presented by innovations in the market. The ongoing uncertainty underscores the evolving regulatory landscape surrounding cryptocurrencies and digital assets in the United States.
