{"id":4093,"date":"2022-05-13T01:09:44","date_gmt":"2022-05-13T01:09:44","guid":{"rendered":"http:\/\/cryptoheretostay.com\/?p=4093"},"modified":"2022-05-13T01:09:45","modified_gmt":"2022-05-13T01:09:45","slug":"sec-chair-gensler-crypto-exchanges-are-trading-against-their-customers-often","status":"publish","type":"post","link":"https:\/\/cryptoheretostay.com\/?p=4093","title":{"rendered":"SEC Chair Gensler: Crypto Exchanges Are Trading Against Their Customers Often"},"content":{"rendered":"<p> <script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"crypto\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n<\/p>\n<p><strong>The chairman of the U.S. Securities and Exchange Commission (SEC), Gary Gensler, says cryptocurrency exchanges are \u201ctrading against their customers often because they\u2019re market-marking against their customers.\u201d He has raised concerns over crypto trading platforms \u201ccommingling\u201d services.<\/strong><\/p>\n<h2>SEC Chair Gensler on Crypto Exchanges Trading Against Customers<\/h2>\n<p>SEC Chairman Gary Gensler said in an interview with Bloomberg News Tuesday that some cryptocurrency exchange platforms may be betting against their own customers.<\/p>\n<p>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 \u201ccommingling\u201d of services may hurt customers.<\/p>\n<p>Noting that the problem of \u201cplatforms trading ahead of their customers\u201d is widespread in the crypto space, the SEC chair asserted:<\/p>\n<p>In fact, they\u2019re trading against their customers often because they\u2019re market-marking against their customers.<\/p>\n<p>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.<\/p>\n<p>Chair Gensler opined:<\/p>\n<p>I don\u2019t think that\u2019s 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.<\/p>\n<p>U.S. lawmakers have called for the regulation of stablecoins, citing that they pose risks to the country\u2019s 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.<\/p>\n<p>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\u2019s crypto unit.<\/p>\n<p>Tags in this story<\/p>\n<p>Bitcoin, Crypto, crypto exchanges, Cryptocurrency, Gary Gensler, SEC, sec chair, sec chairman, Securities, stablecoin runs, Stablecoins, Terra, Tether, UST<\/p>\n<p><em><strong>What do you think about Gensler\u2019s comments? Let us know in the comments section below.<\/strong><\/em><\/p>\n<p>Kevin Helms <\/p>\n<p class=\"article__body__author__info__about\">\nA 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.<\/p>\n<p><i class=\"td-icon-font td-icon-mail-1\"\/><\/p>\n<p class=\"images_credits\"><em>Image Credits: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n<p><strong>Disclaimer<\/strong>: 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.<\/p>\n<p>More Popular NewsIn Case You Missed It<\/p>\n<p><script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"bitcoin\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n<br \/><a href=\"https:\/\/news.bitcoin.com\/sec-chair-gensler-crypto-exchanges-are-trading-against-their-customers-often\/\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The chairman of the U.S. Securities and Exchange Commission (SEC), Gary Gensler, says cryptocurrency exchanges are \u201ctrading against their customers often because they\u2019re market-marking against their customers.\u201d He has raised concerns over crypto trading platforms \u201ccommingling\u201d services. SEC Chair Gensler on Crypto Exchanges Trading Against Customers SEC Chairman Gary Gensler said in an interview with [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":4094,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_wp_rev_ctl_limit":""},"categories":[1],"tags":[],"class_list":["post-4093","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto-updates"],"_links":{"self":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/4093","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=4093"}],"version-history":[{"count":1,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/4093\/revisions"}],"predecessor-version":[{"id":4095,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/4093\/revisions\/4095"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/media\/4094"}],"wp:attachment":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=4093"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=4093"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=4093"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}