Leak reveals SEC has open case on every US crypto exchange, not just Coinbase
The leak reveals that the SEC is investigating not just Coinbase, but all US-based cryptocurrency exchanges, as well as Binance, the world’s largest exchange by volume. forbes Reported on August 5th.
The leaks came from an unnamed staff member in the office of US Senator Cynthia Ramis, who revealed that the affected exchanges were in “varying stages” of investigations.
On July 26, the SEC officially announced that it had opened an investigation into allegations that Coinbase lists unregistered securities as part of its products.
Just days before the announcement, the company’s chief legal officer, Paul Grewal, said: blog post State:
“Coinbase does not list securities on its platform.
Are virtual currencies classified as securities or commodities?
Recently, the Commodity Futures Trading Commission (CFTC) expressed interest in expanding its jurisdiction to cover the cryptocurrency market. The move appears to have been approved by several exchanges, including FTX.
On August 3, the Senate Committee on Agriculture, which governs the CFTC, introduced a bill giving the agency “exclusive jurisdiction over the spot market for digital commodities.”
of Digital Goods Consumer Protection Act 2022 Create a framework designed to regulate “digital commodities” but exclude tokens determined to be “digital securities”.
Senator John Boozman said he believes the digital asset industry is currently governed by a “patchwork of state-level regulations” that are insufficient to protect consumers from fraud.
In an interview with CNBC in May, CFTC Chairman Rostin Behnam called for all cryptocurrencies to be designated as either commodities or security. He argued that Bitcoin and Ether are commodities and should be under the jurisdiction of his agency.
Staff reveals conflict between SEC and CFTC
Based on several case actions, such as SEC vs. Ripple, securities regulators have earned a negative reputation in the cryptocurrency industry.
In an August 2021 tweet, Ripple CEO Brad Garlinghouse It condemned the SEC’s control of digital assets, characterizing it as “regulation by enforcement” of unattainable standards.
” SECThe lawsuit isn’t just about Ripple, it’s about “…impossible standards of fair notice and due process.” finished regulation To execution What crypto innovation can do. “Anyone could be the next candidate without warning.”
According to staff, the SEC is keen to “resolve its dispute with the CFTC over cryptocurrency jurisdiction.” Failure to rectify this issue internally could result in Congress getting involved, in the CFTC’s favor.
Forbes argued that many U.S. exchanges likely have already received notice of action by the SEC.
