This video can be viewed at the below link.[1]

What are crypto platforms, and what makes them similar or different to other exchanges you might know?

When you trade on a stock market, you have certain protections. That’s because way back in the ’20s – the 1920s – the securities markets were rife with fraud and manipulation on the exchanges. And over the generations, the U.S. capital markets have become the gold standard because investors have faith in them. They’re protected against fraud, manipulation, front running, and the like. They’re not perfect, but they’ve stood the test of time.

What does that have to do with crypto trading and lending platforms? Well, these platforms—the crypto platforms—like stock markets, bring together buyers and sellers. Crypto platforms have millions, sometimes tens of millions of retail customers directly buying and selling on the platform without going through a broker.

With so many retail customers trading on crypto platforms, we should make sure that those platforms offer similar protections. So, I’ve asked our staff to work directly with the platforms to get them registered and regulated, to ensure that those crypto tokens come in as well and register where appropriate, as securities.

What’s more, you’re literally handing over the keys to your car, er, crypto. Just imagine this. Imagine handing over all of your stock to the New York Stock Exchange. That would never fly. Thus, I’ve asked staff how to work with platforms to best ensure your assets are protected.

And unlike traditional security exchanges, crypto trading platforms also may act as “market makers.” It means that when you sell your tokens, one of the platforms may actually be buying on the other side. Stock exchanges don’t do this; they don’t serve as their own market makers because that creates inherent conflicts of interest. Thus again, I’ve asked staff to consider whether it would be appropriate to segregate out the market making functions on these crypto platforms.

Look, there’s no reason to treat the crypto market differently just because a different technology is used. That would be like saying drivers of electric cars don’t need seatbelts because they don’t use gas.

We ought to apply these same protections in the crypto markets. Let’s not risk undermining 90 years of securities laws. We should be technology-neutral when it comes to investor protection.