U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler is once again sounding the alarm on crypto exchanges, saying that the platforms are not working in the best interests of their users.
In a new Bloomberg interview, Gensler says that companies issuing crypto tokens are not being 100% honest with their investors.
The SEC chair zeroes in on crypto exchanges, saying that the centralized platforms are operating in an unacceptable manner by taking advantage of their users.
“A lot of investors should be aware, it’s not only a highly speculative asset class, (but) it’s also one that they currently should not assume that they’re getting the protections of the securities laws, even though the securities laws apply to many of those tokens without pre-judging anyone.
But you as investors are not getting the full, fair and truthful disclosure and the platforms, the intermediaries are doing things that we would never in a day allow or think the New York Stock Exchange or Nasdaq would do. The platforms often are comingling and trading against you and have market makers that are on the other side of your trades…
This is a field rife with fraud, rife with hucksters. There are good faith actors as well, but there are far too many that aren’t.”
Touching on the possibility of appealing the court’s landmark ruling in the Ripple lawsuit, Gensler says the decision is not up to him alone.
Earlier this month, Judge Analisa Torres ruled that Ripple’s automated, open-market sales of XRP are not securities transactions. Rumors have been circulating that the SEC intends to appeal the court’s decision but Gensler says the move will have to be first discussed by all of the regulator’s commissioners.
“I’m one of five commissioners. The Commission has not acted on that and if the staff makes a recommendation, we will have a discussion of it and we’ll take it up then, but I don’t really have anything more for you for that.”
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