Emails Reportedly Show Ex-Regulators Helped SBF Get Ins With the CFTC

In recent reports, emails suggest that former regulators of the Commodity Futures Trading Commission (CFTC) played a role in helping Smart Block Futures (SBF) get in contact with the regulator.

SBF is a digital asset exchange platform that sees itself as being part of the “third wave of cryptocurrency adoption,” according to their website. The emails in question allegedly show that former CFTC officials David Hooper and Michael Short reached out to SBF to give them advice on how to approach the CFTC.

Hooper, who served as the CFTC’s Chief Operating Officer from 2014 to 2020, sent an email to SBF in 2019 that said, “It’d be great to have your help helping introduce us to the CFTC.” Short, who served as the CFTC’s Chief Compliance Officer from 2006 to 2012, also sent an email to SBF in 2019 saying, “I am sure the boys in DC are looking to the digital age and want to learn more.”

The emails reportedly were sent around the same time that SBF was trying to get approval to open up shop. According to their website, SBF applied to the CFTC for a license in the summer of 2019 and received approval for an “interim license” in October that year. However, the license was never issued and the license status is still pending.

The relationship between former CFTC officials and SBF raises questions about whether their assistance gave an unfair advantage during the CFTC’s review process. While it’s unclear if the former CFTC officials’ help was related to SBF’s efforts to receive approval, some suggest that the assistance could have been used to influence the regulator’s decision.

It’s important to note that there is no proof that Hooper or Short’s assistance played a role in SBF’s approval process. The CFTC declined to comment on this story and both Hooper and Short could not be reached for comment.

As the CFTC continues to review SBF’s license application, it remains to be seen if the emails will have any bearing on the regulator’s decision. For its part, SBF has stated that it is “fully compliant with the CFTC’s rules and regulations” and is “committed to keeping our users safe and secure.”