John Reed Stark, former lawyer for the SEC, has expressed that cryptocurrency exchanges will face a tough battle with them, and customers should stop using them.
This comment arose from the department’s recent action against Binance and Coinbase. Stark speculated that there is “an abyss” in customer protection on these platforms, due to their non-registration with the SEC and their lack of adherence to order flow requirements.
Furthermore, he pointed out that there is no incentive for operators to abide by US laws prohibiting market manipulation, insider trading, trading against customers, or fulfilling any other obligations.
He stated that there are no requirements for cybersecurity or privacy protection and no minimum financial standards for transactions.
