US SEC examines insider trading safeguards at crypto exchanges
The US Securities and Exchange Commission is reportedly ramping up investigations into insider trading at crypto exchanges, and is checking whether the so-far under-regulated industry has sufficient protections.
In light of the TerraUSD and LUNA coin collapses in recent weeks, the US Securities and Exchange Commission (SEC) has reportedly increased its interest in understanding whether crypto exchanges are doing enough to combat insider trading.
According to Fox Business, the agency has sent out an information request to at least one crypto exchange in the US, asking for information on how the business protects its customers, and what regulations it has in place to detect insider trading.
According to the report, this inquiry is not targeting any single exchange, but is trying to understand the lay of the land. The SEC is particularly interested in whether the so-far under-regulated industry has sufficient protections.
This notice comes soon after news that the agency is investigating Binance US for insider trading claims amid its links to the global Binance crypto exchange. Binance US and its CEO have also been sued over its marketing practices related to stablecoin TerraUSD by a private individual recently.
The SEC is also currently investigating Terraform Labs, the company behind TerraUSD and LUNA, for its part in the collapse of the coins' valuations.
Edited by Teja Lele
