TechFlow, April 14 — According to FinanceFeeds, SEC Commissioner Caroline A. Crenshaw expressed serious concerns during the latest cryptocurrency working group roundtable about the lack of basic protections for retail investors. She pointed out that most cryptocurrency trading platforms are not registered with any regulatory authority and combine brokerage, clearing, and custody functions within a single entity, in stark contrast to traditional financial markets where these roles are separated to avoid conflicts of interest.
Crenshaw emphasized a severe disconnect between investors' expectations and reality regarding the protection of their crypto assets—many do not understand that in the event of an exchange bankruptcy, their crypto assets are treated as property of the exchange, nor are they aware that these investments are not insured by the FDIC or SIPC.
