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Every U.S. Crypto Exchange (And Binance) Is Being Investigated By The SEC, Says Senator Lummis Staffer

Widely circulated reports that the U.S. Securities and Exchange Commission (SEC) is investigating $20 billion cryptocurrency exchange Coinbase are just the tip of the iceberg, says U.S. Senator Cynthia Ramis (R- Wy) office staff said. The staff said all U.S. crypto exchanges, as well as Binance, the world’s largest cryptocurrency exchange, are in various stages of investigation. According to crypto data site CoinGecko, she has over 40 cryptocurrency exchanges in the United States. The SEC did not respond to multiple requests for comment.

Following a number of SEC actions asserting a regulatory domain for the cryptocurrency industry, and an equally strong opposition to what the U.S. Commodity Futures Trading Commission (CFTC) characterizes as “regulation by enforcement” After responding, the staff says. The SEC wants to quickly resolve its dispute with the CFTC over cryptocurrency jurisdiction. If the issue is not resolved internally, lawmakers will need to be involved, and Congress is likely to side with his CFTC, he said.


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In 2014, long before there were any cryptocurrencies other than Ethereum and Bitcoin and its early imitations, the CFTC claimed jurisdiction over what was then called “virtual currencies.” Then, in 2018, a federal court ruled that fraud cases related to cryptocurrencies could be prosecuted, according to a CFTC statement. Similarly, the SEC has repeatedly argued that Bitcoin is a commodity. And he said in June 2018, SEC Director William Hinman said in a speech that he does not consider Ethereum to be a security, and that appropriately he could be under the jurisdiction of the CFTC. suggested.

Evidence that things may be changing began to emerge in June, when SEC Chairman Gary Gensler said Bitcoin was the only crypto asset he was comfortable calling a commodity. When I mentioned that, I was implying that Ethereum is a security. Ethereum itself was not included in the list of nine assets the SEC said were securities in insider trading allegations against a former Coinbase employee, his brother, and his friend, but the SEC Each asset is Ethereum on his blockchain.

Perhaps selfishly, sources describe the conversation between the SEC and the CFTC as particularly fruitless, and that the final decision on who gets what powers will likely be left in the hands of lawmakers. claimed.

Yesterday, U.S. Senator Debbie Stabenow (D-Michigan), chairman of the Senate Committee on Agriculture, Nutrition and Forestry, and ranking member John Boozman (R-AR) announced the 2022 Digital Goods Consumer Protection introduced legislation and gave the CFTC new powers. Authority to regulate digital goods. Senator Ramis himself co-sponsored with Senator Kirsten Gillibrand (D-NY), the Responsible Financial Innovation Act is more comprehensive in scope, bipartisan legislation on the regulation of digital assets Proposal.

Ironically, Senator Ramis’ staff say the chances of both bills passing this year are less than 50%. The only way either bill will pass this year is if a catastrophic black swan event like the collapse of a major U.S. exchange can rally lawmakers. Most likely to come is the recently deferred stablecoin bill, which describes how banks could issue their own stablecoins, and could be attached to the appropriations bill by the end of the year. There are, sources said.

Also, a senior executive at a large cryptocurrency exchange said in the background, based on chit-chat heard from SEC members, that many U.S. cryptocurrency exchanges are facing lawsuits being filed against the companies. said it likely received a Wells Notice, which is used to formally notify companies. , and most of them are under investigation. Binance.US has delisted one of its assets listed by the SEC earlier this week.

Executives said these instances were separate from standard procedures that the SEC routinely performs. Or if the team has ever made a statement about how the token will generate value.

The executive further added that while the SEC had never asked about a Bitcoin fork like Litecoin before, based on recent comments to the House Appropriations Committee, Bitcoin could be a commodity, He said that could change soon.

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