SEC Chairman Draws Attention To Fraud In The Crypto Money Market

  SEC Chairman Draws Attention To Fraud In The Crypto Money Market The "biggest challenge" in Bitcoin and cryptocurrencies is protecting investors, said Gary Gensler, chairman of the Biden Administration's Securities and Exchange Commission (SEC). "There really is a lot of fraud in some markets," Gensler said at the Senate Banking Committee nomination hearing. Pointing to some overseas markets in particular, Gensler did not explain how he could use SEC power to take measures against these events. A professor at the Massachusetts Institute of Technology, which focuses on blockchain technology and digital currencies, Gensler also chaired the Commodity Futures Trading Commission under the Obama administration. Saying that Bitcoin and other cryptocurrencies are bringing a new idea to payments and financial inclusion, Gensler stated that they will also prioritize consumer protection with regard to the preservation of digital assets. While other members of the Biden administration lean towards cryptocurrencies, Treasury Secretary Janet Yellen expressed concern over the widespread use of Bitcoin and other cryptocurrencies for illegal activities.

SEC Chairman Draws Attention To Fraud In The Crypto Money Market

The "biggest challenge" in Bitcoin and cryptocurrencies is protecting investors, said Gary Gensler, chairman of the Biden Administration's Securities and Exchange Commission (SEC). "There really is a lot of fraud in some markets," Gensler said at the Senate Banking Committee nomination hearing. Pointing to some overseas markets in particular, Gensler did not explain how he could use SEC power to take measures against these events. A professor at the Massachusetts Institute of Technology, which focuses on blockchain technology and digital currencies, Gensler also chaired the Commodity Futures Trading Commission under the Obama administration. Saying that Bitcoin and other cryptocurrencies are bringing a new idea to payments and financial inclusion, Gensler stated that they will also prioritize consumer protection with regard to the preservation of digital assets. While other members of the Biden administration lean towards cryptocurrencies, Treasury Secretary Janet Yellen expressed concern over the widespread use of Bitcoin and other cryptocurrencies for illegal activities. “I fear cryptocurrencies are often used for illegal finance,” said Yellen, who attended an event for the New York Times. "This is an extremely inefficient way of running transactions, and the amount of energy consumed for the processes is staggering." The most common issue asked to Gensler by members of the Senate Banking Committee was the increase in GameStop stock prices. These questions raised the relationship between the zero commission brokerage Firm, Robinhood, and wholesaler market makers trading. Gensler told Congress that he is concerned about the "pay for order flow" system and that Citadel Securities as a single market maker holding about 40 % of the retail sales flow. "What does that do to the pricing of capital in the country? these are important questions. ” he said. Gensler, who pledged to examine this situation, declined to make policy recommendations on the issue.  

Source: Yahoo Finance

 

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