SEC intervenes in crypto exchanges

Alex Dovbnya

The US Securities and Exchange Commission is serious about regulating cryptocurrency exchanges

U.S. Securities and Exchange Commission Chairman Gary Gensler is considering potential approaches to regulating cryptocurrency trading platforms, That reports The Wall Street Journal.

The SEC will work with the Commodity Futures Trading Commission to curb crypto trading platforms that allow their users to trade both commodities and securities, according to the report.

Gensler argues that cryptocurrency exchanges operate in the same way as traditional exchanges, which is why they must undergo the same level of scrutiny.

Therefore, the SEC is focused on extending investor protections to crypto trading platforms.

Gensler has also noted that crypto exchanges hold their clients’ assets in custody. So he suggested separating custody from trading to make it safer to store digital assets on exchanges.

As reported by U.Today, Gensler has repeatedly asked Congress to help the SEC regulate cryptocurrency exchanges.

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