At a hearing before the Senate Appropriations Committee, Gary Gensler assured that the mixing of client funds and abuse of user trust is observed on many existing crypto platforms. The official emphasized the differences between traditional stock exchanges and crypto exchanges: the latter often engage in activities that are prohibited on the former.
“The NYSE cannot run a hedge fund and trade against its customers or beat the market by beating its users. But in the crypto industry this happens on many exchanges: they combine all these functions,” the chairman of the regulatory agency explained his position.
“The vast majority of cryptocurrencies are subject to securities laws, and cryptocurrency exchanges do not provide complete information to their customers. Breaking the law and disliking the law are different from lack of clarity. There is just enough clarity in the current laws for financial companies,” the official assured.
