Crypto Advocates Given Green Light to Defend Ooki Against CFTC QouteCoin
New York City: Here’s something you don’t see every day. A US Judge has given the go-ahead for cryptocurrency advocates to join a financial trading platform in its defense against the US Commodity Futures Trading Commission (CFTC). The CFTC claims that Ooki was knowingly facilitating Bitcoin futures trading which, according to the regulator, falls outside of their regulatory jurisdiction. But Ooki insists that they are simply providing a software as service product, and don’t fall under CFTC regulations because they don’t offer their customers futures contracts directly.
Crypto Advocates Given Green Light to Defend Ooki Against CFTC
The CFTC Alleges Ooki Violated the Dodd-Frank Act
US Judge Allows Crypto Advocates to Join Ooki Defense Against CFTC
The US District Court for the Eastern District of New York has given permission for crypto advocates to join the defense of a cryptocurrency trading platform that violated the Dodd-Frank Act. The court ruled that the advocacy group could be allowed as amicus curiae or friend of the court in order provide information on crypto markets and exchanges.
In this case, the advocacy group, with the blessing of federal judge Jack Weinstein, will be able to provide expertise on cryptocurrencies and other emerging technologies, including their economics and regulatory implications.
The CFTC also Alleges Customer Funds Were Misappropriated
In the lawsuit filed in September 2018, the US regulator alleges that OKOI misappropriated customer funds by issuing millions of dollars worth of tokens without having any intention of trading them on a crypto exchange. As part of its case, the CFTC also alleged that customer funds were misappropriated and OKOI never had sufficient capital to trade on any cryptocurrency exchanges.
*The CFTC is asking for a court order which will prohibit OKOI from violating provisions relating to fraud and manipulation in connection with commodity transactions. It also wants an order barring the company’s principals from committing future violations or otherwise violating provisions of the Commodity Exchange Act.
Judge Rules in Favor of Defendant’s Motion to Dismiss
US Judge Allows Crypto Advocates to Join Ooki Defense Against CFTC
A US judge has ruled in favor of a defendant’s motion for dismissal, paving the way for cryptocurrency advocates to defend themselves against allegations of unlawfully operating an unregistered commodity pool. The ruling means that the case will be dismissed without prejudice and can be refiled by the Commodity Futures Trading Commission (CFTC) at any time.
The decision came after a little-known cryptocurrency exchange, named as Ooki in court papers, was accused of being part of an illegal pyramid scheme.
The Court Found All Plaintiffs Lack Standing Under Article III
US Judge Allows Crypto Advocates to Join Ooki Defense Against CFTC On Friday, February 22, 2019, a federal judge ruled that cryptocurrency advocates have standing in a case against the US Commodity Futures Trading Commission (CFTC). The plaintiffs are accusing the regulator of overstepping its authority when it attempted to regulate cryptocurrencies.
Conclusion
The Court has allowed crypto advocates to join the defense of Ooki against the CFTC, which will be a huge victory for the crypto community. Some fear that this is a sign that the government is becoming more hostile towards cryptocurrencies and blockchain technology, but it’s better to think of it as a sign that they are willing to engage in dialogue. The worst case scenario would be for them to start censoring people and their ideas without any discussion whatsoever. It’s worth remembering that the U.S. is not alone in its efforts to regulate cryptocurrency, with China and South Korea also making an effort.
