NewsletterJust-In: US SEC Investigates Crypto Exchanges As Markets Crash
The U.S. Securities and Exchange Commission has sent letters to several crypto exchanges asking for details on insider trading safeguards. The SEC seeks to protect investors after the crypto market crash on Monday led to more than $1 billion in liquidations, with Bitcoin (BTC) and Ethereum (ETH) diving more than 15% and 17%, respectively.
SEC Questions Lack of Insider Trading Protections at Crypto Exchanges
Fox Business journalist Eleanor Terrett announced in a tweet on June 14 that the SEC has sent letters to seek information on the lack of insider trading protections at crypto exchanges. The tweet reads:
“Industry sources with knowledge of the matter tell me the SECGov has sent letters to several crypto exchanges inquiring about a lack of insider trading safeguards.”
As many insider trading cases surfaced in the crypto market, the SEC might be looking for further regulations to protect investors. Previously, the SEC had asked crypto exchanges to register and report financial information. The SEC Chain Gary Gensler had also attacked crypto exchanges for trading against customers. Moreover, amending the definition of an “exchange” for purposes of the Securities Exchange Act.
According to Naeem Aslam, chief market analyst at Avatrade, financial lawmakers had always added restrictions on the withdrawal of fiat currency during a serious panic in the market. He thinks the same logic could help regain confidence among crypto traders.
Furthermore, the SEC is investigating several crypto companies including Binance crypto exchange’s ICO of BNB and Terraform Labs and its founder Do Kwon on unregistered securities. In fact, the OpenSea insider trading case might cause the SEC to regulate NFTs as securities.
Crypto Market Under Pressure Amid Selloffs
The crypto market cap has fallen below 1 trillion as a result of the market crash seen yesterday. The Bitcoin (BTC) and Ethereum (ETH) prices continue to drag lower on Tuesday, with BTC falling to $20,950 and ETH to $1094, the lowest value in the last 24 hours.
The SEC should be looking to safeguard investors by forcing crypto exchanges to improve investor protection and prevent insider trading.
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more… to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Premium Partners
Delivered every day.
- Insights that move markets
- 100,000 active subscribers
Related Articles
- Expert Predicts Further Downside For Bitcoin As Fear and Greed Index Drops To 10
- Solana and XRP ETFs Attract Fresh Inflows Even as Crypto Market Falls
- BLS to Release Jobs Report on Nov. 20 as Uncertainty Over Fed Rate Cut Persists
- JPMorgan calls Bitcoin Price Bottom, Predicts It Will Challenge Gold Next Year
- Zcash to Surpass XRP? Arthur Hayes Makes Bold Claim Amid ZEC’s 45% Rally
- Litecoin Price: With a 12% Surge and Pearson BTC Correlation at –0.01, Is LTC Gearing Up for $125?
- What’s Next for Chainlink Price After 53.87 Million Tokens Accumulated
- What the New Bitcoin Model Predicts About a Possible $200K BTC Price Target?
- Zcash Price Soars 45%: Here’s Why
- Bitcoin Price Pattern Points to a Crash to $62k as Fed Cut Odds Fall to 54%
- Zcash Price Defies Market Crash: Will Shrinking Exchange Netflows Keep ZEC Rallying?
