The SEC is considering increased regulation of stablecoin issuers and restrictions on crypto exchanges as custodians and market makers, according to the head of the US watchdog Gary Gensler. He has said:
“Unlike traditional platforms, crypto exchanges store the assets of their customers. In 2021, cybercriminals stole $14 billion. Agency employees have started to build a mechanism for their work so that they best protect clients’ assets. In particular, it would be advisable to segregate accounts.”
Gensler believes that a similar logic applies to the platforms’ own trading operations, which can be conducted against its users.
The head of the SEC has not forgotten the issuers of stablecoins either:
“The three largest stablecoins are issued by trading or lending platforms. Retail investors in the US do not have direct redemption rights in two of them. There are conflicts of interest and market integrity issues that can be addressed through increased oversight.”
