As Bloomberg reported on May 10, the United States Securities and Exchange Commission (SEC) chair Gary Gensler recently warned the public that some digital asset exchanges may be betting against their own clients.
Indeed, according to Gensler, any firms dealing cryptocurrency are subject to the regulator’s jurisdiction and must register with it. He further claimed that some of those firms were breaking the law by trading ahead of their customers, and that:
“In fact, they’re trading against their customers often because they’re market-marking against their customers.”
Tether (USDT), USD Coin (USDC), and Binance USD (BUSD) are among the stablecoins that have been linked to exchanges, allowing them to “possibly evade AML and KYC” — anti-money laundering and know-your-customer requirements.
The Fight Between SEC and Crypto
The SEC, which is known for taking a severe stance on all things crypto, is now involved in many cases against big players in the crypto and technology industries, including Ripple and Nvidia.
The SEC has been pursuing Ripple in court since December 2020, alleging the company of fraudulently selling more than $1.3 billion in unregistered XRP coins between 2013 and December 2020.
It has also settled accusations with technology company NVIDIA Corporation (NASDAQ: NVDA) for failing to disclose the impact of crypto mining on the income from its gaming division.
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