Policy
Share this article

SEC Launches Inquiry Into Insider Trading at Crypto Exchanges: Report

The agency has sent a letter to at least one major crypto exchange asking about its safeguards, according to Fox Business.

By Nelson Wang
Updated May 11, 2023, 6:32 p.m. Published Jun 14, 2022, 9:16 p.m. 1 min read
SEC building (Andrew Harrer/Bloomberg via Getty Images)
SEC building (Andrew Harrer/Bloomberg via Getty Images)

The U.S. Securities and Exchange Commission (SEC) has begun an investigation into whether crypto exchanges have sufficient protections against insider trading, according to Fox Business, which cited a source with direct knowledge of the inquiry.

  • The source said the SEC had sent a letter to a major crypto exchange asking about the kinds of protections it has in place against insider trading. The inquiry is meant to cover additional exchanges as well, according to the source.
  • The letter was sent after the collapse last month of Terra’s UST stablecoin and the associated LUNA token, according to the report.
  • The SEC did not immediately respond to a request for comment on the Fox News report.
  • The SEC is also reportedly looking into whether Terraform Labs, the company behind UST and LUNA, violated U.S. laws in its marketing of the cryptocurrencies.

Read more: SEC Chair Gensler Suggests Lummis-Gillibrand Bill May ‘Undermine’ Market Protections

SECInvestigationInsider Trading

More For You

‘The banks will not accept it’: Dimon escalates battle over stablecoin rewards in CLARITY Act debate

By Helene Braun, AI Boost|Edited by Nikhilesh De
6 hours ago
Jamie Dimon (John Lamparski/Getty Images)

JPMorgan CEO Jamie Dimon criticized Coinbase CEO Brian Armstrong and warned the current CLARITY Act framework could ultimately fail, as banks and crypto firms clash over whether stablecoin issuers should be allowed to offer yield-bearing rewards that resemble bank deposits.

What to know:

  • JPMorgan Chase CEO Jamie Dimon criticized Coinbase CEO Brian Armstrong and warned that the latest CLARITY Act draft could fail if lawmakers do not address banks’ concerns over stablecoin regulation on Friday.
  • Dimon argued that the bill would let stablecoin issuers effectively pay interest on deposits without bank-style protections, predicting...
Read full story