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KuCoin’s settlement with CFTC in flux after Trump policy shift

A planned settlement between the US Commodity Futures Trading Commission and crypto exchange KuCoin will likely be delayed after a policy shift at the CFTC to deprioritize cases against crypto companies under the Trump administration.

CFTC attorney John Murphy submitted a letter on April 21 to District Judge Valerie Caproni, asking for more time to secure approval for a deal negotiated under the Biden administration, reported Law360.

“It appears unlikely that such authorization will be granted in the near term,” he said, referencing a recent statement by acting CFTC Chair Caroline Pham that the agency’s enforcement division was to deprioritize cases against crypto companies.

The CFTC charged KuCoin with “multiple violations of the Commodity Exchange Act (CEA) and CFTC regulations” in March 2024.

According to the Justice Department, which also filed charges against KuCoin and two founders for violating Anti-Money Laundering laws, the exchange received more than $5 billion and sent more than $4 billion in “suspicious and criminal funds.” 

KuCoin, trading under Mek Global Limited, reached a $297 million settlement with the Department of Justice in January and agreed to exit the US market for at least two years. 

In December, the CFTC and KuCoin informed the court that they reached an agreement in principle to settle the case, however terms and details of the proposed deal were not disclosed. 

In March, KuCoin asked the judge for a 14-day stay to address further negotiations in line with President Trump’s executive order curtailing enforcement actions against the digital asset industry. However, this request was denied, with the judge pressing for negotiation status updates. 

No majority at CFTC

When Pham announced in February that the Commission would wind down its practice of regulation by enforcement, she also noted that terminating active cases would be more difficult to deal with.

The CFTC needs a majority to dismiss a case or authorize its settlement, and there is currently no majority, with two members from each party sitting on its governing body.

This could change if the Senate confirms the appointment of Trump nominee Brian Quintenz to lead the financial regulator.

Both parties have requested an additional 60 days or until the Commission provides “definitive direction” on the matter. 

Related: US regulators FDIC and CFTC ease crypto restrictions for banks, derivatives

On April 21, the CFTC’s Divisions of Market Oversight issued a request for comment to better inform them on the potential uses, benefits, and risks of perpetual contracts in derivatives markets.

“Innovation and new technology have created a renaissance in markets that presents new opportunities that are accessible to more people, as well as risks,” said Pham. 

Magazine: Altcoin season to hit in Q2? Mantra’s plan to win trust: Hodler’s Digest

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PM issues warning to European leaders ahead of ECHR talks

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PM issues warning to European leaders ahead of ECHR talks

Sir Keir Starmer has called for a tougher approach to policing Europe’s borders ahead of a meeting between leaders to discuss a potential shake-up of the European Convention on Human Rights (ECHR).

The prime minister said the way in which the ECHR is interpreted in courts must be modernised, with critics long claiming the charter is a major barrier to deportations of illegal migrants.

His deputy, David Lammy, will today be in Strasbourg, France, with fellow European ministers to discuss reforms of how the agreement is interpreted in law across the continent.

In an opinion piece for The Guardian, Sir Keir and his Danish counterpart, Mette Frederiksen, said the change was necessary to prevent voters from turning to populist political opponents.

Small boat crossings have risen this year. File pic: PA
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Small boat crossings have risen this year. File pic: PA

What’s the issue with the ECHR?

The ECHR, which is the foundation of Britain’s Human Rights Act, includes the right to family life in its Article 8.

That is often used as grounds to prevent deportations of illegal migrants from the UK.

More on Asylum

There has also been a rise in cases where Article 3 rights, prohibiting torture, were used to halt deportations over claims migrants’ healthcare needs could not be met in their home country, according to the Home Office.

The Conservatives and Reform UK have both said they would leave the ECHR if in power, while the Labour government has insisted it will remain a member of the treaty.

But Sir Keir admitted in his joint op-ed that the “current asylum framework was created for another era”.

“In a world with mass mobility, yesterday’s answers do not work. We will always protect those fleeing war and terror – but the world has changed, and asylum systems must change with it,” the two prime ministers wrote, as they push for a “modernisation of the interpretation” of the ECHR.

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System ‘more than broken’, says asylum seeker

What is happening today?

Mr Lammy is attending an informal summit of the Council of Europe.

He is expected to say: “We must strike a careful balance between individual rights and the public’s interest.

“The definition of ‘family life’ can’t be stretched to prevent the removal of people with no right to remain in the country [and] the threshold of ‘inhuman and degrading treatment’ must be constrained to the most serious issues.”

It is understood that a political declaration signed by the gathered ministers could carry enough weight to directly influence how the European Court of Human Rights interprets the treaty.

The UK government is expected to bring forward its own legislation to change how Article 8 is interpreted in UK courts, and is also considering a re-evaluation of the threshold for Article 3 rights.

David Lammy will swap Westminster for Strasbourg today
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David Lammy will swap Westminster for Strasbourg today

The plans have been criticised by Amnesty International UK, which described them as weakening protections.

“Human rights were never meant to be optional or reserved for comfortable and secure times. They were designed to be a compass, our conscience, when the politics of fear and division try to steer us wrong,” Steve Valdez-Symonds, the organisation’s refugee and migrant rights programme director, said.

Sir Keir’s government has already adopted several hardline immigration measures – modelled on those introduced by Ms Federiksen’s Danish government – to decrease the number of migrants crossing the Channel via small boats.

Read more: UK’s immigration shake-up explained

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Beth Rigby: The two big problems with Labour’s asylum plan

Starmer-Macron deal ‘a sticking plaster’

Meanwhile, French far-right leader Jordan Bardella told The Daily Telegraph he would rewrite his country’s border policy to allow British patrol boats to push back small vessels carrying migrants into France’s waters if he were elected.

The National Rally leader called Sir Keir’s “one-in, one-out” agreement with Emmanuel Macron, which includes Britain returning illegal arrivals in exchange for accepting a matching number of legitimate asylum seekers, a “sticking plaster” and “smokescreen”.

Read more from Sky News:
PM warns of ‘lost decade of kids’
Storm Bram brings 90mph winds and rain

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Far-right, 30, and France’s most popular politician

He said that only a complete overhaul of French immigration policy would stop the Channel crossings.

Mr Bardella is currently leading in opinion polls to win the first round of France’s next presidential election, expected to happen in 2027, to replace Mr Macron.

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Trump to begin interviews with Fed chair finalists this week: FT

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Trump to begin interviews with Fed chair finalists this week: FT

The race for the new US Federal Reserve chair is nearing the finish line, with US President Donald Trump reportedly set to begin interviewing finalists for the top job this week. 

According to a report from the Financial Times on Tuesday, Treasury Secretary Scott Bessent has presented a list of four names to the White House.

One of these is former Fed governor Kevin Warsh, whom Bessent is scheduled to meet with on Wednesday. Another is National Economic Council director Kevin Hassett, who is seen as the frontrunner for the role. 

Another two names would be picked from a list of other finalists, which includes Fed governors Christopher Waller and Michelle Bowman, and BlackRock chief investment officer Rick Rieder.

Source: Financial Times

Trump and Bessent are expected to hold at least one interview next week, as a decision looks likely to be announced in January.

However, Trump has revealed he already has his eye on one particular candidate. 

“We’re going to be looking at a couple different people, but I have a pretty good idea of who I want,” Trump said to journalists on Air Force One on Tuesday. 

Kevin Hassett is a frontrunner for Fed chair role

The upcoming round of interviews suggests that Hassett may not be the clear lock in for the role as previously thought, though he is seen as the favorite.

Earlier this month, prediction market odds on Kalshi and Polymarket shot up for Hassett significantly following comments from Trump at the White House on Dec. 2. 

While welcoming guests, Trump labeled Hassett as “potential Fed chair” leading many to assume the president had let a major hint slip.

Related: Trump’s national security strategy is silent on crypto, blockchain

With Hassett’s odds spiking to 85% after Trump’s comments last week, they have since declined to around 73% for Hassett, while Warsh’s odds sit at 13% on Kalshi at the time of writing, which has floated around this range over December. 

Odds for next Fed chair. Source: Kalshi

Regardless of who ends up taking over as chair, the move is bound to impact crypto markets under the new leadership.