Gary Gensler: 'Market manipulations with cryptocurrencies are almost universal' The chairman of the U.S. Securities and Exchange Commission (SEC) stated that market manipulations, which occurred on the collapsed FTX cryptocurrency exchange, are far from being an isolated case in the crypto industry. During hearings in the Senate Appropriations Committee, Gary Gensler assured that mixing client funds and abusing user trust is observed on many active crypto platforms. The official emphasized the differences between traditional stock exchanges and crypto exchanges: the latter often engage in activities that are prohibited on the former. 'The NYSE stock exchange cannot manage a hedge fund and trade against its clients or front-run the market, outpacing its users. But in the crypto industry, this happens on many exchanges: they combine all these functions,' explained the chairman of the regulatory agency. In response, Republican senator from Tennessee Bill Hagerty expressed concern about the lack of clarity in cryptocurrency regulation in the U.S. It is precisely the regulatory uncertainty that pushes cryptocurrency exchanges to operate in offshore jurisdictions. Gensler disagreed with Hagerty, stating that only companies that have decided not to comply with U.S. securities laws do so. Whereas these laws effectively protect capital markets. 'The vast majority of cryptocurrencies fall under the securities laws, and cryptocurrency exchanges do not provide their clients with complete information. Violating the law and a lack of love for the law are different from a lack of clarity. There is sufficient clarity in the existing laws for financial companies,' reassured the official.