Fun

SEC Chair Gensler: Crypto Exchanges Are Trading Against Their Customers Often

News Feed - 2022-05-13 02:05:31

SEC Chair Gensler: Crypto Exchanges Are Trading Against Their Customers Often


The chairman of the U.S. Securities and Exchange Commission (SEC), Gary Gensler, says cryptocurrency exchanges are “trading against their customers often because they’re market-marking against their customers.” He has raised concerns over crypto trading platforms “commingling” services. SEC Chair Gensler on Crypto Exchanges Trading Against Customers


SEC Chairman Gary Gensler said in an interview with Bloomberg News Tuesday that some cryptocurrency exchange platforms may be betting against their own customers.


Gensler expressed concerns that crypto exchanges are not segregating different parts of their businesses, such as trading, custody, and market-making. He warned that the “commingling” of services may hurt customers.


Noting that the problem of “platforms trading ahead of their customers” is widespread in the crypto space, the SEC chair asserted: In fact, they’re trading against their customers often because they’re market-marking against their customers.


The SEC chief also raised issues with stablecoins, emphasizing that the three largest stablecoins are affiliated with crypto exchanges. Tether (USDT) is affiliated with Bitfinex, USD Coin (USDC) is linked to Circle, and Binance USD (BUSD) is connected to Binance.


Chair Gensler opined: I don’t think that’s a coincidence. Each one of the three big ones were founded by the trading platforms to facilitate trading on those platforms and potentially avoid AML and KYC.


U.S. lawmakers have called for the regulation of stablecoins, citing that they pose risks to the country’s financial stability. Both the Federal Reserve Board and the Financial Stability Oversight Council (FSOC) recently warned about stablecoin runs. Earlier this week, algorithmic stablecoin terrausd (UST) lost its peg to the U.S. dollar, causing its price and the price of LUNA to plummet.


Gensler said that most digital assets fall under the purview of the SEC and crypto trading platforms should be registered with the agency. The agency recently said that it almost doubled the Enforcement Division’s crypto unit. Tags in this story Bitcoin, Crypto, crypto exchanges, Cryptocurrency, Gary Gensler, SEC, sec chair, sec chairman, Securities, stablecoin runs, Stablecoins, Terra, Tether, UST


What do you think about Gensler’s comments? Let us know in the comments section below. Kevin Helms


A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography. Masterminds Behind South African Bitcoin Ponzi Scheme Told to Pay Back Over $291 Million REGULATION | 18 hours ago Shanghai High Court Declares Bitcoin Virtual Asset With Economic Value Protected by Chinese Law REGULATION | 22 hours ago


Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleBiggest Movers: AXS Jumps Over 20%, as MATIC Falls to 13-Month Low Next articleTerra Blockchain Temporarily Stops Block Production, Aims to Restart Network With a Patch Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItCentral Bank of Brazil Confirms It Will Run a Pilot Test for Its CBDC This Year


The Central Bank of Brazil has confirmed that the institution will run a pilot test regarding the implementation of its proposed central bank digital currency (CBDC), the digital real. Roberto Campos Neto, president of the bank, also stated that this ... read more.NFT Sales Volume Saw a Small Uptick This Week — Moonbirds, Mutant Apes Take Top Sales UAE Airliner Emirates to Launch NFTs and Experiences in the Metaverse Fed"s Bullard Wants to Raise Bank Rate to 3.5% by Year"s End, Hints at 75 Basis Point Rate Hike Economist Predicts the Fed"s Response to Inflation Will Push Crypto Higher

News Feed

Play-to-Earn Gaming Guild Raises $18 Million in Funding Round Led by Animoca Brands
Play-to-Earn Gaming Guild Raises $18 Million in Funding Round Led by Animoca Brands A play-to-earn (P2E) blockchain gaming guild has raised $18 million in a Series A financing roun
Paraguayan Bitcoin Mining Companies Hurt by Power Rate Hikes of Over 50%
Paraguayan Bitcoin Mining Companies Hurt by Power Rate Hikes of Over 50% Paraguayan mining companies are taking a hit to their profitability due to the steep power fee hikes the go
S&P Global Ratings Study Predicts Crypto and Decentralized Finance Will Continue to Grow in 2022.
S&P Global Ratings Study Predicts Crypto and Decentralized Finance Will Continue to Grow in 2022. S&P Global, an intelligence and data company, suggests that crypto and decentraliz
Montenegro’s Supreme Court sends Do Kwon’s extradition case back to lower court
Turner Wright8 hours agoMontenegro’s Supreme Court sends Do Kwon’s extradition case back to lower courtThe High Court in Podgorica could decide whether the Terraform co-founder is sent to the United States or his nat
Over 36% of Mt. Gox Bitcoin distributed to creditors, but whales keep accumulating
Zoltan Vardai12 hours agoOver 36% of Mt. Gox Bitcoin distributed to creditors, but whales keep accumulatingBitcoin whales continue accumulating, despite the potential sell pressure from Mt. Gox creditors, which could see
Busta Rhymes Talks Cryptocurrencies, Rappers Asks Fans if He Should ‘Buy In’
Busta Rhymes Talks Cryptocurrencies, Rappers Asks Fans if He Should "Buy In" Trevor George Smith Jr., professionally as Busta Rhymes asked his 3.8 million follow
Average daily active unique wallets reach 7M — DappRadar
Tristan Greene3 hours agoAverage daily active unique wallets reach 7M — DappRadarAccording to the report, DApp activity is up 77% over Q4 2023.534 Total viewsListen to article 0:00NewsOwn this piece of crypto historyCo
Switchere: Buy Crypto with CC, Pay with Local Banks, Swap and Sell Coins Online
Switchere: Buy Crypto with CC, Pay with Local Banks, Swap and Sell Coins OnlinePresently, the crypto market is witnessing an incredible growth and massive adoption worldwide. Digita
A ‘Significant Increase’: UK Regulator Says 2.6 Million Residents Have Bought Cryptocurrencies
A "Significant Increase": UK Regulator Says 2.6 Million Residents Have Bought CryptocurrenciesThe UK’s top financial regulator has conducted a survey and found a “signif
Marcel Pechman9 hours agoSEC vs. Ripple: Huge win for cryptoOn this week’s episode of The Market Report, Cointelegraph’s resident expert discusses Ripple’s latest win against the SEC and what it means for the crypt
French Programmer Sent Bitcoin Donations to Far-Right Activists Who Participated in the US Capitol Riots
French Programmer Sent Bitcoin Donations to Far-Right Activists Who Participated in the US Capitol Riots A crypto forensic analysis reveals that a French donor s
Court in China Recognizes NFTs as Virtual Property Protected by Law
Court in China Recognizes NFTs as Virtual Property Protected by Law A court in the Chinese city of Hangzhou has determined that non-fungible tokens, or NFTs, represent virtual prop