The US Securities and Exchange Commission (SEC) Chairman Gary Gensler has argued that there are cryptocurrency exchanges that circumvent the rules and bet on their clients. He reminded us that most digital assets fall within the scope of the SEC, and exchanges operating with them must register with the watchdog.
SEC to double enforcement effort
Gary Gensler, chairman of America’s leading financial watchdog group, has repeatedly called for comprehensive rules to be applied to the digital asset industry. Last year, he revealed that he is “interested” in the field, but wants investors to receive maximum protection when dealing with bitcoins or altcoins.
Recently interview On Bloomberg News, Gensler expressed concern that some cryptocurrency exchanges do not protect their customers with the necessary security mechanisms. Some of these areas people need to know include custody and market making. American felt that a “blending” of these services might not be in the best interests of its customers.
“Crypto faces many challenges, such as a platform that transacts before customers. In fact, they often do business with customers because they are creating a market for them.”
Gensler reiterated that most digital assets fall within the scope of the committee. Therefore, exchanges offering cryptocurrency opportunities must be registered with the SEC so regulators can step up their enforcement efforts in the field in the future.
Regarding stablecoins, Gensler argued that the three major exchanges – Tether, USD Coin and Binance USD – facilitate trading on the major exchanges by “potentially” circumventing anti-money laundering and knowing customers rules.
“I don’t think it’s a coincidence. Each of the three large platforms was established by a trading platform to facilitate trading on that platform and potentially avoid AML and KYC.”
In response to his comments, Binance assured that stablecoins will follow “strict guidelines” and remain “transparent to the user community.”
The focus of the SEC in 2022 is on cryptocurrency exchanges.
In January, Gensler argued that digital asset platforms should be subject to tougher scrutiny by financial watchdogs.
“I asked my employees to look at all the ways they could put these platforms in the realm of investor protection. If the trading platform does not enter the regulated space, it will be another year in which the public is vulnerable.”
At the end of 2021, the SEC has appointed Corey Grayer as its chief advisor, whose primary task is to advise Gensler on crypto regulations. The former has previously addressed the “problem leading to consumer and investor protection”.
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