Trump Policy Shakeup Halts KuCoin $300M CFTC Settlement Talks

CFTC KuCoin Regulation

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Julia Smith

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Julia Smith

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Julia is an experienced editor with a passion for covering a wide variety of beats. She loves all things politics and regularly covers regulatory updates on emerging technology here for Crypto News.

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April 21, 2025

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Cryptocurrency exchange KuCoin may have to wait longer when it comes to formally agreeing upon a settlement with the U.S. Commodity Futures Trading Commission (CFTC) as President Donald Trump’s administration overhauls regulatory policies, Law360 reported on Monday.

KuCoin, CFTC Settlement Delayed

According to the April 21 report, CFTC attorney John Murphy filed a letter asking U.S. District Court Judge for the Southern District of New York, Valerie Caproni, for extended time to approve a deal with the Seychelles-based crypto company.

“It appears unlikely that such authorizations will be granted in the near term,” said Murphy.

The CFTC launched its lawsuit against KuCoin back in March 2024, alleging that the crypto firm and two of its founders, Chun Gan and Ke Tang, violated the Bank Secrecy Act and conspired to operate an unlicensed money transmitting business.

In January 2025, Gan and Tang pleaded guilty to the charges and agreed to step away from their roles at KuCoin while the organization itself agreed to pay nearly $300 million in penalties and fees.

Crypto Regulatory Changes Underway

The federal regulator’s request comes at a pivotal inflection point for its enforcement of the digital asset industry at large, with CFTC Acting Chair Caroline Pham announcing in February that it would end its regulation-by-enforcement approach.

“These much-needed changes will maximize the CFTC’s resources to bring more actions to pursue fraudsters and other bad actors, and not punish good citizens,” Pham said.

Meanwhile, Paul Atkins—Trump’s choice to lead the United States Securities and Exchange Commission (SEC)—was formally sworn in as the federal regulator’s head this week in a move that many in the blockchain sector view as pro-crypto.