The US Securities and Exchange Commission has recently announced filing charges against several crypto-collateralized CFD trading platforms which were offering services to US-based traders, thus violating the federal SEC law. This came as a warning for international companies that have knowingly or unknowingly overstepped this law and allowed US-based traders to access and use the platforms.
Alexander Geralis, the Chief Product Officer of cXchange, has discussed with BloxLive TV how SEC is clamping down on such exchanges and on digital asset margin trading, how this can impact traders who use leverage and affect the global market overall. In his interview, Alexander covered the following areas:
- Was this move from SEC unexpected or something that was a matter of time?
- Is SEC expanding its reach globally?
- What will happen with the companies that are offering services to US investors?
- What does it mean for US investors?
- Is SEC overreacting or providing a much needed regulatory framework?
- Will crypto businesses start being more compliant with SEC or will they find a way around it?
- Do we expect to see a more compliant framework from SEC in 2019?