A high-profile settlement between crypto exchange KuCoin and the U.S. Commodity Futures Trading Commission (CFTC) is now in limbo as the agency shifts its enforcement priorities under the Trump administration.
CFTC attorney John Murphy told District Judge Valerie Caproni in an April 21 letter that it’s unlikely the Commission will approve the agreement “in the near term.” The delay follows a policy shift announced by acting CFTC Chair Caroline Pham, who recently directed the agency’s enforcement division to step back from pursuing crypto-related cases.
The original settlement was negotiated under the Biden administration as part of a broader crackdown on unregulated digital asset activity. In March 2024, the CFTC charged KuCoin with multiple violations of the Commodity Exchange Act, including operating as an unregistered futures commission merchant and failing to meet anti-money laundering (AML) requirements.
The Department of Justice (DOJ) also brought separate criminal charges against KuCoin and its two founders, alleging the exchange processed more than $5 billion in suspicious transactions and lacked adequate AML controls. In January, KuCoin agreed to pay a $297 million fine to the DOJ and exit the U.S. market for a minimum of two years.
The CFTC delay reflects broader uncertainty surrounding crypto enforcement under the current administration, as regulators appear to pull back from aggressive action against digital asset platforms.
Trump Nominee Could Break Tie on Crypto Enforcement Direction
Efforts to finalize KuCoin’s settlement with the CFTC are also being hindered by a partisan deadlock within the agency and unresolved leadership transitions.
In December, both KuCoin and the CFTC informed the court that they had reached a tentative agreement to resolve outstanding charges. But the Commission—currently split between two Democrats and two Republicans—lacks a majority to formally authorize the deal.
That impasse could soon change. Trump’s nominee for CFTC Chair, Brian Quintenz, is awaiting Senate confirmation. His appointment would give Republicans the edge to advance a more lenient stance on crypto oversight and settle pending cases like KuCoin’s under revised priorities.
Acting Chair Caroline Pham has already echoed Trump’s deregulatory approach, stating that the Commission will shift away from “regulation by enforcement.” Yet she acknowledged that finalizing or dropping active cases would remain difficult without a clear voting majority.
In March, KuCoin requested a 14-day pause in proceedings to align with the administration’s evolving direction. That motion was denied, with the judge insisting on continued updates. The exchange and the CFTC have now requested an additional 60-day extension while awaiting internal resolution at the Commission.
While enforcement stalls, the CFTC has not stepped away entirely from crypto regulation. On April 21, the agency’s Division of Market Oversight called for public comment on the use and risks of perpetual contracts in derivatives markets—indicating a continued interest in shaping future crypto policy frameworks, even amid a more hands-off enforcement posture.
Quick Facts
- KuCoin’s CFTC settlement remains delayed amid a regulatory policy shift deprioritizing crypto enforcement.
- The CFTC’s internal deadlock has prevented the approval of the negotiated deal.
- KuCoin already settled with the DOJ for $297 million and agreed to withdraw from the U.S. market.
- A Trump-appointed CFTC chair could shift the agency’s direction and help resolve stalled crypto cases.
