The SEC has every crypto exchange on its naughty list.
Forbes reported today that the US Securities and Exchange Commission (SEC) is currently investigating all crypto exchanges in the US, including Binance, not just Coinbase; this is according to a staffer to US senator Cynthia Lummis.
Many raised eyebrows in July when the SEC, while charging 3 in an insider trading scheme at Coinbase, described certain assets listed by the exchange as securities. Notably, John Deaton, the lawyer representing XRP holders in Ripple’s legal battle with the SEC, within the period said he expected the SEC to file a case against a US exchange before the end of the year.
Days later, it was revealed that the SEC is investigating Coinbase for listing assets deemed as unregistered securities. Meanwhile, Coinbase, on its part, asserts that its coin listing process has been vetted by the SEC. Nevertheless, the news of the SEC investigating all crypto exchanges makes Deaton’s prediction more likely, even as a crypto executive confirmed to Forbes that some exchanges have already been served Wells Notices informing them of impending charges against them.
Notably, the US SEC, in recent years, has built a reputation for focusing too much on enforcement actions and less on providing regulatory clarity. In addition, crypto industry members have often decried the lack of willingness of the regulator to communicate.
While the SEC and the Commodities Futures Trading Commission (CFTC) are in talks to share supervision of the crypto markets, the Lummis staffer reveals that these talks are breaking down and will likely require lawmakers to step in. According to the source, lawmakers are likely to lean towards the CFTC.
Notably, in recent months in a bid to bring clarity to the crypto markets, two major bipartisan bills have been proposed in the senate, with both leaning heavily towards the CFTC as the primary regulator of the markets. The first in June by Senators Cynthia Lummis and Kirsten Gillibrand and the latest coming on Wednesday from Debbie Stabenow and John Boozman. However, the staffer reveals that neither is likely to pass this year.