Securities and Exchange Commission Chairman Gary Gensler said in an exclusive interview with Yahoo Finance Live on Wednesday that cryptocurrency exchange FTX is using its client assets to trade at affiliated hedge fund Alameda Research, which is expected to meet securities law. suggested a violation of
“While I cannot speak to specific cases or circumstances, securities law stipulates that client funds must be properly segregated,” Gensler said.
“Nor should you operate a broker-dealer, hedge fund or exchange.
Gensler said some cryptocurrency platforms have asked the SEC to continue their ability to lend, trade and operate exchanges and hedge funds under one company, but under traditional securities laws. Authorities do not allow this because it is customary in
“We said no, we have to separate it,” Gensler said. we said no. ”
“The basic message I received is the same public message as the private message,” said Gensler. Your field will not last long outside the norms of public policy. ”
FTX Fallout
Lawmakers on both sides of the aisle have blamed the SEC for FTX’s failure.
Democratic Senator Elizabeth Warren has called on government agencies to “be prepared,” saying federal agencies should use their broad powers to crack down on cryptocurrency fraud. and is reportedly investigating FTX for civil violations.
Gensler told Yahoo Finance:
As for regulation of cryptocurrencies, Gensler did not say whether government agencies will create new, coordinated regulations next year, despite seeing a cryptocurrency meltdown this year. According to Coinmarketcap data, total crypto assets had fallen to about $840 billion as of Wednesday afternoon, below the star of the year’s $2 trillion.
Gensler pointed out that the SEC has taken a total of 100 enforcement actions against cryptocurrency companies, dozens of them under Gensler’s leadership, and that the authorities have already implemented securities laws. He emphasized again that the
“We are enforcing [existing securities laws]We are against these crypto intermediaries (they may call themselves crypto lenders or exchanges) against these crypto intermediaries, essentially casinos. , I’m telling you to obey the law,” he said.
Gensler told Yahoo Finance that he has one goal when it comes to regulating cryptocurrencies next year.
“They can work with the SEC to do it properly, or they can take more enforcement action and continue their course. Hmm.
When asked why it took so long for cryptocurrency exchanges to register with the SEC, Gensler put off explaining exchanges.
“It’s really up to them,” Gensler said. “We are clear. Like you said before, we can use some exemption powers to reconcile things, but we are moving these businesses to another exchange. We will not abandon the basic protection of segregation.”
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