SEC chief Gary Gensler wants to bring the public's 'trust' back to the stock market — and even to crypto

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MarketWatch exclusive: After BlockFi agreed to pay a record fine for a crypto company, SEC Chairman Gary Gensler talked about his agenda on crypto regulation and investor protection.

Satoshi Nakamoto, the mysterious creator of bitcoin, dreamed of a world where financial transactions and investing could occur without the need to trust a third party. According to Securities and Exchange Commission Chairman Gary Gensler, Nakamoto fundamentally misunderstood how markets work.

See also: Gensler’s aggressive agenda continues as SEC proposes shortening settlement times in wake of GameStop saga As part of its settlement, BlockFi will seek to register its lending product, BlockFi Yield, with the SEC, which will require filling a public registration statement that explains the risks associated with it.

A primary concern for the SEC chairman is the rapid growth of so-called “dark” markets for stocks, like alternative trading systems or wholesale market makers. These companies, which include Citadel Securities and Virtu Financial VIRT, +0.26%, sometimes pay brokers, like Robinhood HOOD, -3.59% or Charles Schwab SCHW, -0.48%, for the privilege of executing their customers’ orders, so they can earn the difference between the price at which they’ll buy and sell a stock.

The SEC could move to reform the NBBO so that it is calculated using off-exchange trades and smaller on-exchange trades that are currently excluded, and could also reform rules that require exchanges to quote prices for stocks in increments of one penny. Because market makers do not have to follow this rule, they have an advantage over lit exchanges, enabling them to capture a larger market share.

 

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NOBODY TRUST OR RESPECTS GENSLER OR THE SEC, what a joke.

he wants to regulate crypto from its volatility while legacy market companies has tanked 60% since highs..... paypal....meta... etc

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