According to Fox Business journalist Eleanor Terrett, the U.S. Securities and Exchange Commission (SEC) has sent letters to several crypto exchanges asking for details on the lack of insider trading safeguards. Terrett said that the information was made available to her by “industry sources that have knowledge of the matter.”
The SEC says it wants to protect investors by enacting regulations after various insider trading allegations arose in the crypto sector. The SEC had previously requested that crypto exchanges register and report financial data. Gary Gensler of the Securities and Exchange Commission (SEC) has also criticized crypto exchanges for trading against customers.