A Sheriff is entering the SEC, and on the “Cryptodollar …”
A new sheriff is about to be appointed to the SEC, and he will have a lot to do.
Next SEC President Gary Gensler said he will take a close look at the order flow business model used by many apps, all during the US Senate confirmation hearing for candidates to lead the Securities and Exchange Commission. SEC) and the Consumer Financial Protection Bureau (CFPD).
With these words, he pledged to examine the business model that has been at the center of the GameStop controversy in recent weeks, according to Bloomberg on Tuesday. The critics of the system have pointed out that frontrunning , that is the fact that the winners are those who, by paying, arrive first, is the result of “ Gamification ”; that is, the diffusion with game-like Apps, of the trading system which also provides that normal customers, who do not pay commissions and have no special agreements, come after, in the execution of orders, compared to large customers.
Gensler also said he will carefully examine trading apps that encourage the “gamification” of trading from the perspective of the compulsive drive to trade and risk. It is specifically looking at "how to protect investors by using behavioral advice trading applications designed to incentivize traders to do more."
Gensler also said he will seek to rid the cryptocurrency markets of fraud and manipulation, in what would likely be a Herculean venture for his administration. Good luck because its predecessors have only dented the “Dirty” part of the system.
Gensler is not poor: his personal fortune amounts to $ 119 million and, previously, he chaired the CFTC , which deals with futures markets, and was a partner of Goldman Sachs. As director of the CFTC he was deemed "a tough" enemy of lobby pressure.
Meanwhile, CFPB candidate Rohit Chopra said he "supports the implementation of an instant digital payment system for the United States, to give consumers faster access and better control over their dollars," practically an invitation, or a open door to central bank digital currencies, CBDCs.
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The article A Sheriff is entering the SEC, and on the "Cryptodollar …" comes from ScenariEconomici.it .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/uno-sceriffo-sta-entrando-alla-sec-e-sul-criptodollaro/ on Wed, 03 Mar 2021 08:45:30 +0000.