Debate about Crypto's legalisation is not a new thing because still lot of hesitations, iffs and butts are there due to its decentralisation and ownership. Although some countries allowed its trade , payments and bartering but still governments wants it under their custody which is not possible due to its algorithmatic system.
SEC , Securities and exchange commission, is Highest authority in USA which make sure about any company, product to be listed in his system then monitor it to ensure the safety of assets of taxpayers.
SEC chairman Mr.Gary Gensler is hard liner against any illegal activity especially in digital marketing, digital currency and Crypto. SEC passed a move by majority to tightening up the laws for exchanges in reference of custody for assets of customers.
According to reports SEC wants to crackdown to Crypto exchanges with strong hands who are holding the assets of costumers and investing it in other projects without permission of holders. Gary moved to force the exchanges to be a registered broker dealership before dealing the assets. It will provide data to SEC about investment and it's profits and same time SEC will be able to track the flow of assets in protection of rights for customers.
Gary hopes that under new purpose the exchanges will not be able to withdraw or invest the customer's assets without permission and it will help to prevent any situation like FTX.
In first stance SEC issue a legal notice to Binance on its illegal trade as it not registered as security. This notice leaves negative impact over BnB and BUSD as it falls down by 7% . It becomes biggest threat to biggest Crypto exchange to keep head up Infront of his clients.
In coming days I am expecting more legal notices to other Crypto projects in this regard which will bow down the confidence of customers with exchanges. Otherwise exchanges should follow the policy of SEC or face the judicial circuit.