SEC probes Wall Street brokers on crypto dealings
The main US market regulator is raising its scrutiny of Wall Street brokerages that deal in cryptocurrencies, Bloomberg reported on Thursday.
Citing sources familiar with the matter, Bloomberg says US brokerages have been “peppered” with questions from the Securities and Exchange Commission (SEC) in recent weeks, fearing growing levels of market misconduct.
The SEC is specifically interested in fees generated from trading, financing and initial coin offerings (ICOs) and the involvement of investment advisers.
SEC chairman Jay Clayton has repeatedly said cryptocurrencies such as bitcoin and ethereum are not securities and, therefore, are not regulated by the SEC. His stance on ICOs, however, is much tougher and he has said this market is rife with fraud.