US Securities and Exchange Commission (SEC) Chairman Gary Gensler is once again sounding the alarm about crypto exchanges, saying the platforms are not operating in the best interests of their users.
In a new Bloomberg interview, Gensler says companies issuing crypto tokens are not being 100% honest with their investors.
The SEC chairman focuses on crypto exchanges and says the centralized platforms operate in an unacceptable way by taking advantage of their users.
“Many investors should be aware that not only is it a highly speculative asset class, (but) it is also one that they should not currently assume will receive the protection of the securities laws, even though the securities laws apply to many of those tokens without pre-assessing anyone.
But you as investors are not getting the full, honest and truthful disclosure and the platforms, the middlemen do things that one day we would never allow or think the New York Stock Exchange or Nasdaq would do. The platforms often congregate and trade against you and have market makers standing on the other side of your trades…
This is a field full of fraud, full of peddlers. There are also gullible actors, but there are far too many who are not.”
As for the possibility of appealing to the court important ruling in the Ripple lawsuit, Gensler says the decision isn’t his alone.
Earlier this month, Judge Analisa Torres ruled that Ripple’s automated, open-market sales of XRP are not securities transactions. Rumors are circulating that the SEC plans to appeal the court’s decision, but Gensler says the move will first have to be discussed by all of the regulator’s commissioners.
‘I am one of the five commissioners. The Commission has done nothing about it and if the staff make a recommendation we will discuss it and then we will take it in hand, but that is all I really have for you.”
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