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A comment on SEC charges Kraken for operating as an unregistered securities exchange. Parent comment

Re:SEC charges Kraken for operating as an unregistered secur... by ForkMeOnTinder on Monday November 20, 2023 @07:15PM (#38356961)
Comingling doesn't imply gambling.

I could borrow $10 from Jim, and $20 from Sue, and deposit them both into the same Chase account which now has $30. As long as the balance stays above $30, everything is fine.

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Re:SEC charges Kraken for operating as an unregistered secur... by koolba on Monday November 20, 2023 @08:09PM (#38357405)
You could let the balance fall below $30 in your example because it’s a loan (“borrow”), not a deposit.

If you’re claiming to hold the funds on their behalf and do otherwise (like “investing” them in your less than arm’s length hedge fund), then you’re breaking your fiduciary obligations.

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Re:SEC charges Kraken for operating as an unregistered secur... by yieldcrv on Monday November 20, 2023 @08:00PM (#38357325)
Right, the problem is when leverage and borrowing comes in
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