Investing.com – US Securities and Exchange Commission (SEC) Chairman Gary Gensler recently spoke in an interview with Bloomberg about the urgent need to regulate crypto exchanges.
He himself is quite open to this sector, but wants to avoid by all means that investors are scammed by buying and selling cryptocurrencies.
The lack of legal regulation in many parts of the world means that exchange operators do not necessarily act in the interests of their clients. Rather, there are instances where exchanges act as market makers and thus bet directly against their clients.
Of course, this business model only works if operators take advantage of their customers. Exchanges that want to be above suspicion should therefore independently register with the regulator when offering crypto services to Americans. Gensler continues:
“In the cryptocurrency space, there are many challenges – platforms that act faster than their customers. Often they even act against their customers, because they are doing market making against them.”
Another hot topic on Gensler’s lips is stablecoins. And the current fall of TerraUSD and (LUNA) shows that his concerns are not entirely fanciful.
The SEC Chairman knows that stablecoins like , and should facilitate transactions on major exchanges. Indeed, their use makes it possible to “potentially” circumvent anti-money laundering rules, as he explained:
“I don’t think it’s a coincidence. Each of the big three stablecoins was developed by exchanges to facilitate trading on those platforms and potentially circumvent AML and KYC.”
In view of these elements, the authority intensified its efforts in January in order to shed a little more light on this affair. Gensler said of this:
“I have instructed my staff to consider all possibilities of including these platforms in the scope of investor protection responsibility. If trading platforms are not subject to regulation, the public would be unprotected for a additional year”.
By Marco Oehrl