U.S. Bank and Oppenheimer & Co will pay a total of $7 million to the Commodity Futures Trading Commission (CFTC) in a federal crackdown on off-channel communications and improper record keeping.

The CFTC has jointly ordered both U.S. Bank and Oppenheimer & Co, an introducing broker, to pay $6 million and $1 million in civil monetary penalties respectively for the same offense.

The CFTC says the firms have admitted that from at least 2019 until now, both of the firms failed to prevent their employees from using unapproved communication channels such as personal text messages.

“The firms were required to keep certain of these written communications because they related to the firm’s CFTC-registered businesses.

These written communications generally were not maintained and preserved by either firm, and neither firm generally would have been able to provide them promptly to the CFTC if and when requested.

Each order further finds the firm-wide use of unapproved communication methods violated each firm’s internal policies and procedures, which generally prohibited business-related communication via unapproved methods. Further, some of the supervisory personnel responsible for ensuring compliance with the firm’s policies and procedures also used unapproved communication methods to engage in business-related communications, in violation of firm policy.”

U.S. Bank reportedly has about $650 billion in assets under management while Oppenheimer has $28 billion.

The CFTC says that since December 2021, the agency has imposed a total of $1.124 billion in civil monetary penalties on 22 different financial institutions for the same violation – the unapproved communication methods, in violation of CFTC recordkeeping and supervision requirements.

Last year, the US-registered broker-dealer arm of BNP Paribas said it was being investigated by the U.S. Securities and Exchange Commission (SEC) and the CFTC for possibly breaking record-keeping provisions and for using private text messages for communcation.

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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Data Nerd Data on December 13 shows that over the past 24 hours, the wallet “0xea8” moved 200 million BUSD from Binance, the world’s leading cryptocurrency exchange by client count.

The whale transfer caught the attention of keen crypto users, who also noted that the transfer was soon followed by a deposit of 99.95 million FDUSD, a stablecoin supported by the exchange.

Whale Address Accumulating FUSD Stablecoin On Binance

That the address is shuffling and accumulating large amounts of stablecoins is noteworthy. Data Nerd Data shows that the address has transferred over 781 million FDUSD to Binance in the last four months.

During this period, from around September, the crypto market has been recovering, edging higher on the back of improving fundamental factors.

The accumulation of over $781 million of stablecoin by the wallet controlled by an unknown individual or entity is overly bullish for crypto and Bitcoin prices.

It could suggest that a large institutional investor or group of investors is amassing stablecoins, potentially preparing for a significant market move.

Historically, large movements of stablecoins into centralized exchanges have often preceded major bull runs. 

Stablecoins are vital for crypto, ensuring there is enough liquidity. Since most are pegged to the USD and can be backed by fiat, these tokens, mostly minted on Ethereum or Tron, are often used as a gateway to crypto. Therefore, their accumulation can signal increased institutional interest and potential buying pressure.

Is A Mega Bitcoin And Crypto Rally In The Making?

That the wallet address is fortifying its FDUSD base reinforces the notion that institutional investors, ahead of the possible approval of the first batch of Bitcoin ETFs in the United States, could be increasingly warming up and preparing for leading coins like Bitcoin and Ethereum to extend gains in 2024. 

When writing on December 13, Bitcoin and top altcoin prices are relatively stable. To illustrate, Bitcoin is trending higher, stable above the $41,000 level after pulling back from 2023 highs of around $44,000. Crypto participants are bullish and expect Bitcoin prices to float even higher in 2024 before halving.

Binance will stop supporting BUSD in 2024. The exchange has also delisted USDC. Accordingly, USDT and FUSD are popular on Binance. However, the exchange continues to be on the Securities and Exchange Commission’s (SEC) crosshairs. 

In late November, the Department of Justice (DOJ) issued a $4.3 billion penalty on Binance as settlement with the SEC, Commodity Futures Trading Commission (CFTC), and other aggrieved agencies in the United States. The deal also saw Changpeng Zhao, the founder of Binance, step down from the CEO role.

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Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

Ripple’s chief legal counsel is calling out what he says are childish antics from the U.S. Securities and Exchange Commission (SEC) as regulators continue to target crypto assets.

In a new thread on the social media platform X, attorney Stuart Alderoty says Binance’s recent regulatory woes are a “necessary step” to bring the digital assets industry into compliance.

“The Binance resolution of anti-money laundering (etc.) violations is a necessary step to bring the crypto industry into compliance with these important laws and safeguards. Big banks all went through some version of this years ago.”

However, according to Alderoty, the SEC’s recent enforcement actions and its reaction to Binance’s charges show that the agency is particularly unreasonable compared to the other regulators.

“The Treasury and CFTC (Commodity Futures Trading Commission) joined the DOJ (Department of Justice) in the Binance deal. The SEC did not, and was glaringly absent from the stage today. This sends a clear message that the agency – under Gensler – has not only become an outlier globally, but an outlier within its own government.

The SEC, like a petulant child who can’t stand being ignored, tweeted its misguided suit against Kraken at 3pm EST today – the exact time the DOJ press conference regarding Binance was scheduled to begin. Truly secondhand embarrassment at this juvenile behavior.”

Alderoty also says the SEC has gone as far as inventing new terms for crypto assets that have no technical meaning under the law and have not been recognized by the other regulatory agencies.

“Remember, the SEC’s fabricated term ‘crypto asset securities’ is nowhere to be found in the DOJ case against Binance because it has no meaning under the law. The courts have been very clear that tokens themselves are not securities.”

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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