SEC Chair Paul Atkins Speaks About Cryptocurrencies During Booming Market

U.S. Securities and Exchange Commission (SEC) Chairman Paul Atkins made important assessments about the role of the regulator, combating insider trading, and its approach to the rapidly growing cryptocurrency market.

Atkins noted that insider trading has long been an area of scrutiny by the SEC, acknowledging that the number of large-scale cases that have attracted public attention has decreased in recent years. However, he also addressed concerns about poor regulation, particularly in the cryptocurrency market.

“Fraud is fraud,” said Atkins, reminding that the SEC’s primary mission is to protect investors, support capital formation, and ensure the orderly and efficient operation of markets. He stated that they also play an active role in the cryptocurrency market in line with this mission.

In the program, it was stated that investor groups made organized purchases and sales through private communication channels, using the example of the “Sorkin Coin” that was briefly released in the past, and that this was reminiscent of the market manipulations of the 1920s. Atkins said that such movements are closely monitored by the SEC.

Atkins also stated that the way companies communicate with investors has changed and that social media and podcasts are now effective in disseminating information in addition to traditional platforms. Stating that this situation has brought issues of access to inside information back to the agenda, Atkins said that markets operate based on information and fair access is important.

Atkins was also asked about regulations regarding stock transactions by members of Congress. While it was noted that the “STOCK Act” passed by Congress a few years ago had limited impact, Atkins said that they were meticulously reviewing thousands of reports on the subject, but that he could not comment on specific cases.

*This is not investment advice.