December 9, 2022

SEC demands more pressure on cryptocurrencies after FTX collapse

According to the SEC chairman, there is a suspected “Securities Act” violation in the case. This is indicated by the fact that FTX used client funds for proprietary trading through the Alameda Research fund.

In an interview with Yahoo Finance, he stressed that current U.S. law requires financial service providers to clearly separate customer funds from company assets. FTX has clearly violated this rule.

He also responded to Senator Elizabeth Warren, who publicly demanded that the SEC and Gensler personally “at least take some action.” But how strong is the agency’s position really?

We’ve already figured out that it’s not too strong. Yes, perhaps the SEC will take some steps to tighten the pressure on FTX, but nothing more. Until the agency does not have a clear vision of the regulatory framework in this area can hardly talk about any sanctions for the big “players”.


Jack Evans

About the author

I became a crypto asset owner in 2014, when the industry was in its infancy. Before that, I was working in the classic US and European stock markets. Since then, I have gained extensive experience in both cryptocurrency investing and day trading. I am happy to share with readers my experience with crypto exchanges, DeFi and NFT instruments. 

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