Source: Zero Hedge
Incoming SEC Chair Gensler Will Scrutinize Trading Apps, Rid Crypto Markets Of “Fraud” And “Manipulation” Incoming SEC Chair Gary Gensler has said at the U.S. Senate confirmation hearing for the nominees to lead the Securities and Exchange Commission and the Consumer Financial Protection Bureau that he’s going to be examining the payment for order flow business model closely. He committed to looking at the business model that has been at the center of the GameStop controversy for the past several weeks, according to Bloomberg on Tuesday. Critics of the system ( including Zero Hedge ) have pointed to how frontrunning could be prevalent as a result of the model. This ostensibly could result in clients of zero commission brokerages not getting the best possible execution on trades. Gensler also said he’s going to scrutinize trading apps that encourage “gamification” of trading, according to Yahoo . He is specifically looking at “how to protect investors using trading applications with behavioral prompts designed to incentivize traders to trade more.” Gensler also said he will try to rid cryptocurrency markets of fraud and manipulation, in what would likely be a herculean undertaking for his administration.