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The official believes that the business models of cryptocurrency companies are based on non-compliance with the requirements of regulatory legal acts. According to him, they are based on clients' money, which is mixed with the assets of companies. As a result, there is a conflict of interest.
The head of the SEC cited the example of the New York Stock Exchange. He explained that the agency would never allow her to work like a cryptocurrency platform that acts as a market maker or hedge fund. Also, the SEC would not allow you to borrow your token and not talk about what it does.
Gensler also focused on the fact that 3 out of 4 bankrupt banks had a connection with cryptocurrencies. By doing this, he showed that the relationship of cryptocurrencies with traditional finance is growing, which increases the risks.
Regarding the confrontation with Coinbase, Gensler noted that regulation has already been created. The agency has developed rules that are completely suitable for the crypto market, since there is nothing new in it.