The initial small-time buying frenzy aimed at GameStop and several other low-value stocks professional investors commonly bet against has expanded into other markets, including cryptocurrencies and silver, drawing the attention of federal regulators who fear fraud schemes.

US federal regulatory agencies, including the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) could soon launch a probe of recent activity on the New York Stock Exchange centered on commonly shorted stocks.

The move follows weeks of outcry demanding investigations and regulations in response to upheavals in US stocks caused largely by a group of amateur online investors who organize their purchases of commonly shorted stocks on the subreddit WallStreetBets. However, who should be investigated and regulated changes depending on who is doing the demanding.

Some, like Sen. Elizabeth Warren (D-MA), progenitor of the Consumer Financial Protection Bureau, have called for regulation of both.

Cryptocurrencies like Dogecoin and bitcoin have also benefited from the investment rush, although as Sputnik reported, because they don’t obey the same forces governing their rise and fall in value, such rushes are prone to becoming “pump-and-dump” schemes, which the CFTC investigates on the grounds of fraud.

Sourse: sputniknews.com

Treasury Sec Yellen to Meet With Federal Reserve, Regulators to Launch ‘Market Integrity’ Probe

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