SEC Prioritizes Crypto Work With CFTC

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00:00What is the, I don't want to say allegation, but what are the questions around the social media

00:04posts here? So the SEC said that this company shares, its stock price surged, and it surged

00:13on this really unusual activity that potentially was based on people touting the stock on social

00:20media. There is a lot of emphasis from the regulators right now, from both the SEC and

00:26FINRA, which regulates broker-dealers, about the potential for kind of scams coming through

00:32WhatsApp. Like if you get an unusual message through WhatsApp saying, do I have an investment

00:36for you? It might not be the best place to make an investment. And that's what the SEC's

00:42announcement yesterday said. It suspended the trading for 10 days in this firm. And yeah,

00:49they're not going to be able to trade for 10 days. Yeah. Any move like that, a thousand percent or

00:53almost a thousand percent inside three weeks certainly requires a closer look. I also want

00:59to talk with you a little bit, Nicola, about the SEC Chair Paul Atkins talking about how he

01:04needs to coordinate crypto rules. And that's the number one job right now after his meeting with

01:09the CFTC. Talk a little bit about why they're now teaming up. Right. So the U.S. is pretty unique in

01:17that. It has two financial regulators over the market for securities and derivatives. It has the

01:23SEC and it has the Commodity Futures Trading Commission. Many other countries only have one.

01:28And so a lot of banks and hedge funds are subject to basically two sets of rules and sometimes they

01:33end up overlapping. So there's always been calls over the years for the two agencies to work together

01:39and try to find areas of common ground. But there's also been turf battles over the years,

01:44including in the area of crypto. And crypto is definitely having a moment here in D.C.

01:50And the two agencies are really trying to do the best that they can to try to come up with rules

01:56absent federal legislation, that things that they can kind of work on together to just get some kind

02:03of get some kind of groundwork in place.