No, Crypto Exchanges Are Not Like Stock Exchanges
SEC Chair Gary Gensler lays out some sensible goals, but his proposals are a nonstarter.
Gary Gensler has some plans for crypto exchanges.
Photographer: Al Drago/Bloomberg
US Securities and Exchange Commission Chair Gary Gensler has released a video explaining how the agency will regulate cryptocurrency trading platforms. He lays out some sensible goals, but the proposals would prevent them from ever being reached.
Gensler is concerned about market manipulation, spoofing, front-running, phantom liquidity (orders that will be canceled before they can ever be executed), shadow liquidity (people willing to transact who will not expose their willingness in public orders), flash crashes and other ills. He says the New York Stock Exchange does a good job on these points thanks to SEC regulation, so those regulations should be ported to crypto exchanges.