Kenne Michael 
Coinbase notified a subset of its user base earlier today regarding a subpoena it had obtained from the Commodity Futures Trading Commission (CFTC).
The subpoena is an element of the CFTC’s investigation into the Dubai-based cryptocurrency exchange Bybit.
Bybit May Face Serious Issues
In a recent review, crypto analyst Colin Wu noted that the Commodity Futures Trading Commission (CFTC) may be shifting its focus from Binance to Bybit.
After resolving issues with Binance, Wu proposes that the CFTC is now attempting to obtain user information from Coinbase because it is difficult to locate many Bybit employees in the U.S.
The intention is to monitor Bybit-to-Coinbase transfers, particularly those involving American users, to determine whether Bybit violates any regulations by providing services to U.S. customers.
Bybit is one of the most powerful and extensively utilized platforms for trading derivatives on the market.
Additionally, the exchange has a significant presence in the global market for trading crypto derivatives.
In the recent CCData Crypto Exchange Benchmark Report, Bybit was awarded an exclusive ‘AA’ rating in the Spot and Derivatives trading categories earlier this month.
This acknowledgment points out the exchange’s exceptional performance and steadfast dedication to maintaining the highest levels of security and performance.
However, if the CFTC discovers any transaction between Bybit and Coinbase, particularly one involving American investors, the derivatives trading platform could face major penalties.
This may be another high-profile enforcement by an American regulator following last week’s Binance incident.
CFTC Actions in Full Swing
The CFTC exercises investigative authority using tools specified in its enforcement manual, including subpoenas and voluntary statements.
Following legal obligations, Coinbase is obligated to collect information, including in situations involving subpoenas, the exchange stated in a May post.
Coinbase stated, “We may access, read, preserve, and disclose information when we believe it is reasonably necessary to comply with law, legal obligations, regulations, law enforcement, governmental, and other legal requests, court orders, or for disclosure to tax authorities.”
Furthermore, additional federal agencies have issued subpoenas on crypto-related matters.
Earlier this month, PayPal, a prominent payments company, disclosed that it had been served with a subpoena by the Securities and Exchange Commission concerning the PayPal USD stablecoin.