Gary Gensler is the United States securities and exchange Commission chairperson. In his recent interview with Yahoo Finance has mentioned that the bankrupt cryptocurrency exchange platform FTX had violated the rules set up by US SEC regarding securities. FTX platforms used the customer’s assets for doing all the trades with its sister hedge fund company Alameda research.
What is the opinion of US SEC Gensler on the FTX case?
Gensler Further in his recent interview with Yahoo finance mentioned that it is not so important that he spoke to anyone regarding any case or the situation but all the rules set out by US SEC regarding the customer’s funds usage into the company’s management have to be properly managed Systematically segregated by the companies in the US.
Gensler also mentioned that any company that has been running a market exchange should not be having any brokerage firm or hedge fund form or any other exchange as a side-aligned business to the main company with which they will be working on its trades with help of customers funds in the company.
As a part of traditional securities laws in the US, any company who is having the user’s fund is not allowed to continue working in the company domains in which they will be able to lend, trade, or operate the user’s fund or operate any hedge fund under its company.
Gensler also mentioned in the interview that the USA has to say no to such companies who are not working as a separate entity into their hedge fund companies and taking the user’s fund for operating such companies. Further, Gensler said that some companies had already approached Gensler for the lighter touch regulations but the US SEC has to say no to such companies.
After the collapse of the cryptocurrency exchange platform FTX in the US, all the lawmakers in the US pointed out the US SEC in the failure of regulating the cryptocurrency market in the US. SEC and the Department of Justice have been already working on the bankruptcy protection proceedings of cryptocurrency exchange platform FTX after the collapse of cryptocurrency exchange platform FTX last month.
After the fall of the cryptocurrency exchange platform FTX, Elizabeth Warren who is a democratic Senator in the US Proposed that it is time US SEC has to suit up along with all the federal agencies to work on all the expensive authorities the US SEC has to crack down on all the loopholes and regulation flaws into the cryptocurrency market.