tdtwedt wrote:SEC’s Gensler Says Crypto Exchanges Trading Against ClientsSpeaking in an interview with Bloomberg News, Gensler said he’s concerned that crypto exchanges aren’t putting up proper walls between different parts of their businesses such as custody, market-making, and offering a trading venue. He said the “commingling” of services may not be in clients’ best interests.
“Crypto’s got a lot of those challenges-- of platforms trading ahead of their customers,” Gensler said. “In fact, they’re trading against their customers often because they’re market-marking against their customers.”
The securities regulator also raised issues with stablecoins, digital assets that are typically pegged to the dollar or another fiat currency. The three largest stablecoins -- Tether, USD Coin, and Binance USD -- are all affiliated with exchanges, Gensler said in the interview.
“I don’t think that’s a coincidence,” he said. “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,” he added, referring to anti-money laundering and know-your-customer controls.
https://finance.yahoo.com/news/sec-chie ... 37972.html
What about cutting off the buying of certain stocks (GameStop comes to mind) in order to make your clients' positions in those stocks tank and help your hedge fund friends? That was done by many stock trading platforms like ETrade and others.