{"id":107434,"date":"2019-06-07T14:36:27","date_gmt":"2019-06-07T21:36:27","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=107434"},"modified":"2020-04-06T01:19:01","modified_gmt":"2020-04-06T00:19:01","slug":"sec-chairman-cryptocurrency-markets-easily-manipulated","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/sec-chairman-cryptocurrency-markets-easily-manipulated\/","title":{"rendered":"SEC chairman suggests cryptocurrency markets are easily manipulated, unlike the stock market"},"content":{"rendered":"

Jay Clayton<\/a>, chairman of the SEC, spoke about the Commission\u2019s take on the cryptocurrency industry. In an interview with CNBC, Clayton said that unlike the crypto market there are \u201csophisticated\u201d rules in place to prevent the stock market from being manipulated.<\/p>\n

Chairman of top US securities regulator discusses cryptocurrencies<\/h2>\n

After voting to pass a new rule that compels securities broker-dealers to act in the best interests of their clients, the chairman of the Securities and Exchange Commission (SEC) went on CNBC's Squawk Box<\/a> to talk more about its implementation.<\/p>\n

Clayton explained that, under the new rules, broker-dealers and investment advisors need to disclose the way they make money to their clients. He then cited statistics indicating that there has been an increase in competition in financial services, which has served to benefit investors over finance companies.<\/p>\n

This led to him explaining the SEC's stance on Bitcoin<\/a> and cryptocurrencies in general, saying that the SEC is currently “engaging<\/a>” on the matter of cryptocurrency derivatives products. Before the regulatory agency approves a Bitcoin ETF, it will have to address the problems of custody and lack of rules in the industry.<\/p>\n

Clayton then told CNBC that the problem with cryptocurrencies is that they have been marketed to resemble stocks, but have no rules set that regulate their trading.<\/p>\n

The SEC won't “flip the switch” on crypto<\/h2>\n

“We have sophisticated rules and surveillance to make sure that people are not manipulating the stock market. Those cryptocurrency markets by-and-large do not have that. And we\u2019re working hard on that,” Clayton said.<\/p><\/blockquote>\n

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SEC Chairman Jay Clayton on #Crypto<\/a>:<\/p>\n

"We have sophisticated rules & surveillance to ensure that people are not manipulating the stock market. Those cryptocurrency markets by and large do not have that." pic.twitter.com\/1iGryAiSob<\/a><\/p>\n

— Squawk Box (@SquawkCNBC) June 6, 2019<\/a><\/p><\/blockquote>\n