Crypto businesses don’t properly safeguard customer assets and often mix them with their own funds. This according to US Securities and Exchange Commission Chair Gary Gensler, who was especially blunt in his assessment of the embattled asset class and its proponents. “This is largely a noncompliant field,” Gensler said in an interview with Bloomberg Television. “They’re commingling customer funds with their businesses.”
The negativity from the SEC chief is nothing new. For months he’s been warning of the potential dangers posed by the industry. The regulator has asserted that many tokens and crypto products are really just securities that trade on the blockchain and should be registered with the agency. Gensler took particular issue with how crypto exchanges often play multiple roles. He suggested their business models can create significant conflicts of interest. “We don’t let the New York Stock Exchange also run a hedge fund and trade on the exchange.” he said. “Why would we do it here?” —David E. Rovella SEC
Bloomberg Evening Briefing
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