FOR IMMEDIATE RELEASE

March 29, 2023

CONTACT:
William Pierre-Louis, Jr.
william@ourfinancialsecurity.org

 SEC Action on Beaxy Will Build Out Campaign to Rein in Crypto Abuse
Advocates say similar firms should be on notice; industry should shape up not point fingers

Washington, D.C. – The Securities Exchange Commission’s case against crypto trading platform Beaxy and its executives for operating an unregistered exchange will build out the ongoing effort by regulators to enforce laws on the books to stop harmful activities within the crypto industry, according to Americans for Financial Reform and Demand Progress.

“The dominoes continue to fall for the crypto industry, which has long resisted meaningful regulatory oversight, only to turn around and criticize regulators for enforcing existing law,” said Mark Hays, senior policy analyst with Americans for Financial Reform and Demand Progress. “Also, by operating as an unregistered exchange, broker and clearing agency, Beaxy profited from multiple sides of trades occurring on its platform, a clear conflict of interest.”

This common practice in the crypto industry is deeply at odds with traditional financial regulation, which separates these roles to help prevent fraud, market manipulation and other malfeasance, and ensure firms are acting in the best interests of their clients.

“Any number of crypto platforms large and small use a similar model,” Hays added. “The collapse of firms like FTX have shown how even the largest crypto firms struggle to meet basic financial regulatory standards, so other firms might face similar actions unless or until they decide to meet these standards. They should spend less time whining about regulators and more time complying with the law.”

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