According to John Reed Stark, former SEC division chief, U.S. regulators have just begun the “siege” of crypto platforms. How neutral his statements are, however, needs to be more credible.
Former SEC staffer John Reed Stark has warned crypto users of further action by U.S. regulators. That’s according to a tweet from the former head of Internet enforcement at the Securities and Exchange Commission.
According to the tweet, investors should “get out of crypto platforms” that are “high risk” and “inherently unsafe.” Stark also believes the SEC is “spot on” with its enforcement against crypto exchanges.
According to him, there is not only a gap in consumer protection on crypto exchanges but a “huge gap.” Stark lists the SEC’s requirements for compliant trading venues in the rest of his statement. Crypto exchanges, on the other hand, Stark said, lack such standards.
John Reed Stark is considered a U.S. Securities and Exchange Commission veteran.
He worked there for 20 years, including eleven years in the Internet Enforcement Division. According to his statement, Stark usually considers himself an “outspoken and devoted SEC critic.” Most recently, however, he accused crypto exchange Coinbase of manipulating and deceiving the public.
However, based on his previous statements and his SEC past, it is doubtful how neutral his opinions are towards cryptocurrencies.