An official working at the office of US Senator Cynthia Lummis stated that all the crypto exchange platforms in the United States are under the SEC’s (Securities and Exchange Commission) probe.
As correctly predicted by one of the renowned lawyers in the US, John E. Deaton, it seems like the chairman of the SEC, Gary Gensler, is on a mission to sue a crypto exchange; it could be Binance, Coinbase, or any other such platform that is on Gensler’s radar.
Gensler is targeting almost all the crypto exchanges operating in the US
On August 4th, reports came out that, including the big names of Coinbase and Binance, every other cryptocurrency exchange is to be investigated by the US SEC. The XRP lawyer, Deaton, stated in his tweet that one or more cryptocurrency platforms should be alerted that Gensler is very likely to sue another firm by the end of 2022.
Coinbase was recently investigated by the SEC based on the false allegations of offering insider trading on its platform on unregistered securities. Also, the case with the Ripple crypto exchange has very likely backfired. But, SEC Chairperson-Gensler is looking for more evidence to press charges against the crypto exchanges.
Brad, I hate to be that guy – but go back and look at my old tweets – 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 🆚 several defendants. https://t.co/n7Ixf8lsQ2
— John E Deaton (210K Followers Beware Imposters) (@JohnEDeaton1) August 5, 2022
Some of the earlier reports have also shown that Binance’s 2017 coin offering, BNB, is being scrutinised by the SEC now. According to Gensler, every other cryptocurrency, excluding Bitcoin, is a security; therefore, they come under the commission’s jurisdiction.
The Commissioner of the CFTC (Commodity Futures Trading Commission), Caroline Pham, along with crypto experts and some legislators, is criticising the SEC’s methods of enforcing regulation on crypto exchanges.
If the issues continue to prevail and the matters are not handled internally, the CFTC might take over the regulation of cryptocurrencies and other digital assets.