The US Securities and Exchange Commission (SEC) has begun studying measures to protect US cryptocurrency exchanges from insider trading, calling into question the legality of such a business.
Fox Business journalist Eleanor Terrett informed on Twitter that, according to her sources, the SEC sent letters to several crypto exchanges to obtain comprehensive information about their measures to protect investors from insider trading.
After allegations of insider trading were made in the crypto industry, the head of the SEC, Gary Gensler, criticized crypto exchanges for using their position and trading against clients. It is assumed that the collection of up-to-date information on current protection measures anticipates the intention of the regulator to introduce additional rules to protect investors.
The activities of the largest cryptocurrency exchange in the world, Binance, fell into the field of criticism of the SEC. In February 2022, the commission investigated the connection of the US division of the exchange with two market makers and regular buyers, trading companies Sigma Chain and Merit Peak. According to the SEC specialists, these companies enjoyed special preferences when working with Binance.US.
In early June, the SEC initiated a review of Binance regarding the sale of its own BNB tokens in 2017 to see if it was an unregistered securities trading.
Source: Bits
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