Gary Gensler's Stablecoin Statement

Gary Gensler, Chairman of the United States Securities and Exchange Commission (SEC), noted that leading stablecoins are mostly associated with major exchanges, emphasizing that exchanges often open transactions against their clients.

President Gary Gensler, increasing the dose of criticism about crypto-asset Exchanges, stated that some platforms avoid following the rules and may be taking positions against their own customers. Gensler, Chairman of the Securities and Exchange Commission, weighed in on the notion that most crypto-assets trading within their jurisdiction should be registered with regulatory bodies. He noted that the commission focused on regulatory work. Expressing that he is worried that cryptocurrency exchanges do not make enough efforts to build the necessary walls between different services such as the custody market, market making and exchange area, Gensler noted that it may not be in the interests of customers that these services are not sufficiently differentiated. "Exchanges mostly market against their customers" Gensler said, “For cryptocurrencies, there is a lot of trouble with platforms trading with more information from their customers,” He also added, “Essentially, these platforms are mostly trading against their customers because they are trading in the opposite direction of their customers.” Gensler states that the three largest stablecoins, Tether, USD Coin, and Binance USD, are all associated with exchanges, while “Each of the three largest coins has been issued by one of the cryptocurrency exchanges to facilitate trading on that platform, and possibly AML (Anti Money Laundering) and "It was created to avoid regulations like KYC (Know Your Costumer)." With these words, Gensler focused on money laundering woes. Tether, which is one of the largest stablecoins in the world and has a market value of $ 83 billion, is known to be associated with the names behind the Bitfinex crypto exchange. Another stablecoin giant, USDC, was revealed by a consortium of companies, including Coinbase Global Inc. Binance, the world's largest crypto exchange, revealed Binance USD with a market value of $ 17 billion, together with a company called Paxos.