Is ETH a security or a commodity? In my mind, crypto is another form of currency, hence "crypto currency" I had to dig this one up. According to SEC's own website, it states that "off-exchange (better known as OTC) market" is governed neither by SEC or CFTC. But they seem to have been deliberately written in a fuzzy manner. You be the judge. There are three ways to trade foreign currency exchange rates: On an exchange that is regulated by the Commodity Futures Trading Commission (CFTC). An example of such an exchange is the Chicago Mercantile Exchange, which offers currency futures and options on currency futures products. Exchange-traded currency futures and options provide traders with contracts of a set unit size, a fixed expiration date, and centralized clearing. In centralized clearing, a clearing corporation acts as single counterparty to every transaction and guarantees the completion and credit worthiness of all transactions. On an exchange that is regulated by the Securities and Exchange Commission (SEC). An example of such an exchange is the NASDAQ OMX PHLX (formerly the Philadelphia Stock Exchange), which offers options on currencies (i.e., the right but not the obligation to buy or sell a currency at a specific rate within a specified time). Exchange-traded options on currencies also provide investors with contracts of a set unit size, a fixed expiration date, and centralized clearing. In the off-exchange market. In the off-exchange market (sometimes called the over-the-counter, or OTC, market), an individual investor trades directly with a counterparty, such as a forex broker or dealer; there is no exchange or central clearinghouse. Instead, the trading generally is conducted by telephone or through electronic communications networks (ECNs). In this case, the investor relies entirely on the counterparty to receive funds or to be able to trade out of a position. Special Risks of Off-Exchange Forex Trading As described above, forex trading in general presents significant risks to individual investors that require careful consideration. Off-exchange forex trading poses additional risks, including: There Is No Central Marketplace. Unlike the regulated futures and options exchanges, there is no central marketplace in the retail off-exchange forex market. Instead, individual investors commonly access the forex market through individual financial institutions – or dealers – known as “market makers.” Market makers take the opposite side of any transaction; for example, they may be buying and selling the same foreign currency at the same time. In these cases, market makers are acting as principals for their own account and, as a result, may not provide the best price available in the market. Because individual investors often do not have access to pricing information, it can be difficult for them to determine whether an offered price is fair. There Is No Central Clearing. When trading futures and options on regulated exchanges, a clearing organization can act as a central counter-party to all transactions in a way that may afford you some protection in the event of a default by your counterparty. This protection is not available in the off-exchange forex market, where there is no central clearing. Regulation of Off-Exchange Forex Trading The Commodity Exchange Act permits persons regulated by a federal regulatory agency to engage in off-exchange forex transactions with individual investors only pursuant to rules of that federal regulatory agency. Keep in mind that there may be different requirements or treatment for forex transactions depending on which rules and regulations might apply in different circumstances (for example, with respect to bankruptcy protection or leverage limitations). You should also be aware that, for brokers and dealers, many of the rules and regulations that apply to securities transactions may not apply to forex transactions. The SEC is actively interested in business practices in this area and is currently studying whether additional rules and regulations would be appropriate.
Exactly. They want things to be fuzzy so crypto companies don't have rules to comply with and so that they can keep on imposing fines. Coinbase and other companies have even reached out to the SEC for guidance and they won't respond, since they make their money from imposing fines. Now with gary gensler being brought to light, everything is backfiring on him because now crypto companies like Coinbase and Bitrex are looking to move overseas and resume operations. This is a big deal because now the US will be missing out on profits from retail investors in the crypto market. And with the US dollar the way it is, and other countries looking to ditch the US dollar in their trade. This puts gary in a very bad position. His corruption with big banks is now getting exposed.
Every week we are watching unregulated crypto exchanges become insolvent and all the customers funds disappear. At this point the regulation of these exchanges is long overdue. Of course, there are clowns in Congress who want to remove the head of the Securities and Exchange Commission because he wants to regulate these entities who are ripping off the public in a wholesale manner. In the same manner that FTX reached out to regulators (and Congress), firms like Coinbase and Bitrex have "reached out" to the SEC. Their intent is to avoid all regulation, not to arrive at a reasonable regulatory framework for crypto -- basically their efforts are less than honest and do not merit a response.
%% I prefer private sector myself also ; back to my candle charts...................... Overall SEC is better run than average gov agency/ in my opinion.