12/05/2022 18:08
Just in the hours when cryptocurrencies collapse, a harsh criticism from Gary Gensler of the SEC, Securities and Exchange Commission, the American Consob has entered.
Here’s what the SEC number one said
Gensler points out that most digital assets fall under the SEC’s remit and that crypto exchanges must register with the regulator. In an interview with Bloomberg News, Gensler said he is concerned that many cryptocurrency exchanges offer services that are not in the interest of their clients. In practice, Gensler criticized the fact that many of the major crypto exchanges manage custody, market-making and trading services without keeping them separate as is required for traditional exchanges.
Cryptocurrencies have many of these problems: in fact, they often trade against their customers because they market-mark against their customers, explained Gensler who then also targeted the stablecoins, digital assets that are typically pegged to the dollar or another fiat currency.
The three major stablecoins are also in the sights
The three largest stablecoins – Tether, USD Coin e Binance USD – they are all affiliated with exchanges, Gensler said in the interview. “I don’t think it’s a coincidence.” “Each of the big three was founded by trading platforms to facilitate trading on those platforms and potentially avoid AML and KYC,” he added, referring to the anti-money laundering controls and customer knowledge.
The largest stablecoin, Tether, which has a market value of $ 83 billion, has ties to the people behind the crypto exchange Bitfinex. Another major exchange, USDC, was created by a consortium of several companies, including Coinbase Global Inc. The world‘s largest cryptocurrency exchange, Binance, is linked to Binance USD, which has a market value of 17 billion. dollars.
In response to Gensler’s comments, Binance referred to a blog stating that its stablecoin adheres to “strict guidelines and remains transparent with the user community.” Coinbase declined to comment and Bitfinex did not immediately respond to a request