"CFPB Likely To Step Back From Crypto Regulation"

According to Ethan Ostroff, a partner at the Troutman Pepper Locke law firm, the Consumer Financial Protection Bureau (CFPB) is likely to see a reduced role in crypto regulations as other federal agencies like the Securities and Exchange Commission (SEC) and state-level regulators assume a bigger role in crypto policy.

In an interview with Cointelegraph, Ostroff said, 

"I think with the current administration, my sense is, we are highly likely to see a significant pullback by the CFPB in the context of the activity by other regulators." 

Under the Consumer Financial Protection Act (CFPA), the state regulators can also assume some of the regulatory roles of the CFPB, the attorney said but he also added that some functions will continue to fall within the purview of the CFPB as a matter of established law.

Ostroff also cited the New York Department of Financial Services (NYDFS) and the California Department of Financial Protection and Innovation (DFPI) as regulators to keep an eye on as potential leaders of crypto regulations at the state level.

Nearly 400,000 FTX users risk losing $2.5 billion in repayments

There is a risk for nearly 400,000 creditors of the bankrupt cryptocurrency exchange FTX to miss out on $2.5 billion in repayments after failing to begin the mandatory Know Your Customer (KYC) verification process.

According to an April 2 court filing in the US Bankruptcy Court for the District of Delaware.

Roughly 392,000 FTX creditors have failed to complete or at least take the first steps of the mandatory Know Your Customer verification. 

For the verification process, the time for FTX users was originally until March 3.

The filing states, “If a holder of a claim listed on Schedule 1 attached thereto did not commence the KYC submission process with respect to such claim on or prior to March 3, 2025, at 4:00 pm (ET) (the “KYC Commencing Deadline”), 2 such claim shall be disallowed and expunged in its entirety.”