A New York judge has temporarily halted the CFTC-KuCoin case for six months as KuCoin settles a $297 million fine with the U.S. Department of Justice. The pause allows the CFTC time to await new leadership and mandates biannual case updates. This action aligns with the current enforcement policy of the CFTC regarding regulatory violations.
A U.S. District Judge has imposed a six-month pause on the case involving the Commodity Futures Trading Commission (CFTC) and cryptocurrency exchange KuCoin. This decision follows KuCoin’s recent settlement with the U.S. Department of Justice, which includes a $297 million fine and a two-year market exit for KuCoin in the U.S. Legal analyst Lene Powell comments that this stay preserves the current situation as the CFTC awaits the appointment of a new commissioner by President Trump.
As part of the stay, the CFTC is required to provide semiannual updates regarding the status of the case. If the proposed settlement receives approval, the Commission must act swiftly. The judge’s decision reflects the CFTC’s policy of not pursuing regulatory violations without clear evidence of intent to disregard the law, as noted by Powell, signalling a shift in the enforcement climate in the crypto sector.
