US SEC Chief Executive Has Accused Digital Currency Exchanges Of Trading Against Customers

Notwithstanding the growth of the crypto market by leaps and bounds – as the latest exchanges and cryptos are entering the space regularly – authorities in several nations are increasing their endeavors for the regulation of the asset class along with its consumers. Specifically, one of them counts to be the SEC (Securities and Exchange Commission) of the United States, the chairman of which – Gary Gensler – has recently cautioned the public regarding a few exchanges of digital assets that may be engaged in betting against the users, as reported by Bloomberg on 10th May.

Bloomberg was informed by Gensler that the entirety of the institutions trading cryptocurrency comes under the scope of the regulator and, thus, requires having registration with it. Moreover, he discussed that a few among the respective bodies were avoiding the principles, by trading in advance of their clients, and hence they are trading against them. In addition to this, the Chairman condemned stablecoins, taking into account BUSD (Binance USD), USDC (USD Coin), and USDT (Tether), for their association with exchanges permitting them to evade KYC and AML-related controls.

The SEC, which is considered to have a strict point of view regarding the entirety of the crypto-related services and products, is reportedly going through diverse legal suits confronting a few of the prominent names throughout the industry of technology and cryptocurrency, taking into account Nvidia as well as Ripple. As reported earlier, the U.S.-based Securities Regulator has long been fighting a legal suit against Ripple since 2020’s December, accusing the exchange of illegitimately trading up to $1.3B worth of XRP tokens (which were the unregistered securities according to the SEC) from 2013 to 2020.

Recently, it has leveled charges against NVIDIA Corporation (a tech firm which is listed on NASDAQ) for not revealing the influence that is put by crypto mining over its gains obtained from the gaming business. A couple of months back, a team of congressmen of the United States – apprehensive about the information-seeking procedure of the SEC – wrote to the agency that the process was lacking innovation, particularly regarding the crypto startups.

In parallel to this, the chief executive officer (CEO) of VanEck (a worldwide investment management platform), Jan Van Eck, suggested that the spot BTC ETFs (exchange-traded funds) were being held by the SEC as hostage over the negligence to accept the respective product.

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