Former SEC official says crypto trading platforms are high-risk, perilous, and inherently unsafe

By Michael On Jun 10, 2023

John Reed Stark warned crypto Investors & suggested to remain away from centralised crypto trade platforms amid increasing regulatory pressure in the US.

John Reed Stark is a former official of the United States Securities Exchange Commission (SEC). Reed is the founder of the SEC’s Office of Internet Enforcement. He spent nearly 20 years in the SEC agency. This week, the American securities regulatory body sued BinanceUS & Coinbase crypto exchange. The SEC’s back-to-back suits created a very big negative wave among crypto investors.

On 8 June 2023, John Stark took to Twitter to share his suggestion for the crypto Twitter users & said that they should remain away from the crypto exchanges because it is the initial phase of the SEC’s regulatory action against crypto companies.

The former SEC official also said that he spent 20 years in the SEC agency as an attorney & he is aware that what may be the worst thing may happen in the incoming days.

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According to Reed, crypto exchanges are not a safe option for now, no matter what they claim to be. He also said that his statements are not based on his crypto hater or negative stances, as he is neutral to this innovative sector.

Furthermore, the SEC former official said that the SEC agency has huge potential to handle this innovative sector with its expertise of traditional Federal Securities laws.

This ex-SEC official shared several points where the majority of the crypto exchanges are failing to comply with several rules. According to Reed, the majority of theCrypto firms operators may not present transparent evidence, to confirm whether they were/are providing services with full customer fund protection or not.

Get out of crypto platforms now, I can't say it any plainer. Having worked as an attorney in the SEC Enforcement Division for almost 20 years (including 11 years as Chief of the SEC Office of Internet Enforcement), I believe that we now know for certain that crypto trading…
— John Reed Stark (@JohnReedStark) June 8, 2023

Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.