The Securities and Exchange Commission (SEC) is looking into every cryptocurrency exchange, according to a spokesperson for U.S. Senator Cynthia Lummis’ office. Lawyer John E. Deaton may have predicted correctly that SEC Chair Gary Gensler will “sue an exchange by the end of the year, whether it’s Coinbase, Binance, or another exchange.”
Gary Gensler, SEC Chair, has targeted all cryptocurrency exchanges.
A staffer from U.S. Senator Cynthia Lummis’ office stated that the SEC is investigating all crypto exchanges in the United States, including Binance.
In a recent tweet, XRP lawyer John E. Deaton confirmed his earlier prediction that the SEC is likely to prosecute another exchange this year.
” I say the SEC will sue an exchange or more than one. The SEC is likely to pick 2-4 exchanges that each sale 5-10 of the same tokens the SEC claims are securities. It could be 1 Complaint vs several defendants.”
The SEC is already investigating Coinbase’s listing of unregistered securities. Furthermore, SEC Chair Gary Gensler is apparently looking into additional accusations against the crypto exchange. According to previous reports, the SEC is also looking into Binance’s 2017 initial coin offering of its crypto currency Binance Coin (BNB).
According to the SEC, most cryptocurrencies are securities and fall within the commission’s authority. Gary Gensler stated earlier this year that all cryptocurrencies other than Bitcoin are securities.
Commodity Futures Trading Commission (CFTC) Commissioner Caroline Pham, politicians, and crypto specialists have all denounced “regulation by enforcement.”
If the debate is not settled internally, Cynthia Lummis’ employee believes the US Congress will finally choose the CFTC to regulate the crypto business. In a 2018 lecture, former SEC director William Hinman stated, “Ethereum is not a security.” It’s also one of the most persuasive pieces of evidence in the SEC v. Ripple case.
A cryptocurrency exchange also revealed that the SEC has already sent Wells Notices to US exchanges notifying them of pending legal action.
CFTC Jurisdiction Over Cryptocurrencies Proposed in Crypto Bills
So far, two bipartisan crypto-related legislation have been introduced in the United States Senate, both of which assert CFTC jurisdiction over cryptocurrency. Both bills, though, are unlikely to succeed this year.
Senators Cynthia Lummis and Kirsten Gillibrand introduced the Responsible Financial Innovation Act in June to regulate digital assets. Senators Debbie Stabenow and John Boozman introduced the Digital Commodities Consumer Protection Act yesterday, which defined Bitcoin and Ethereum as commodities, giving the CFTC new authority.
Meanwhile, Binance has delisted the AMP cryptocurrency, which was classed as a security by the SEC. In addition, a petition calling for SEC Chair Gary Gensler’s resignation appears to be gathering steam.