The US SEC has been conducting an internal raid into the affairs of respective platforms across the country. According to several sources, the regulatory body has sent a memo to these platforms to inquire about their measures involving insider trading. The body wants to know its methods for combating such activities and the measures to shield investors and traders.
The regulator wants to eliminate insider trading
The US SEC is being particulate about investor funds as the market continues to slide well under in the last few days. According to records, the market lost almost $1 billion last week, with Bitcoin and the second digital asset, Ethereum leading the charge. Both digital assets are still seeing remarkable losses, with Bitcoin (8.34% loss) and Ethereum (2.98% loss) leading the bearish market.
Per a tweet by a journalist from the renowned media company Fox, the US SEC has sent out a memo to exchanges suspected of lacking safeguards against insider trading. The US SEC wants to know their approach towards it and how to eliminate the activities. With more insider trading cases springing up in the last few weeks, there have been calls for regulators to protect investors in the crypto space. A while back, the US SEC mandated crypto exchanges to submit information regarding their companies’ finances to the body at intervals.
US SEC is investigating two exchanges
Gary Gensler, the top executive at the regulatory body , has consistently pointed accusing fingers toward exchanges because of the acts that do not align with their users. There have also been talks about changing what constitutes an ‘exchange’ which will be added to the Securities Act. In a review carried out by a top analyst, there has always been a ban on fiat withdrawals during periods of market-wide panic. He mentioned that if regulators adopt this same strategy, it could help bolster users’ confidence in the crypto market.
Also, Binance and Terraform Labs are under scrutiny at the US SEC headquarters for different issues. Nuances issue is connected to the ICO that the company held during its launch, while the Terraform Labs issue is related to suspicions of unregistered securities. According to the analyst, the insider trading case at OpenSea may have been the trigger that helped blow this issue into the open. As of yesterday, the crypto market has gone under $1 trillion as most tokens continued to entertain bearish movements.