CFTC Chair J. Christopher Giancarlo and North American Securities Administrators Association ("NASAA") President Joseph P. Borg signed an agreement to share confidential information in order to improve and increase the impact of enforcement-related activities.
In remarks delivered at a NASAA conference, Mr. Giancarlo outlined the beneficial effects of the Memorandum of Understanding ("MOU") for cooperative enforcement. The objectives of the MOU are to (i) enhance enforcement of the CEA and (ii) allow the regulatory agencies to pursue enforcement actions under state securities laws, commodity codes and other areas of law. Mr. Giancarlo noted that the MOU will, among other benefits:
- maximize the resources necessary for enforcement actions;
- increase the impact of enforcement efforts and, therefore, further deter entities and individuals from engaging in illicit activity;
- require and promote consistency and clarity within governmental responses to violations of the CEA;
- reduce duplicative efforts; and
- enable the communication of vital information between regulatory agencies.
Mr. Borg reminded member jurisdictions to sign the MOU in order to participate.
Commentary / Steven Lofchie
Presumably, concern over crypto products, and the uncertain regulatory status of these products, loaned some urgency to this agreement.
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