US lawmaker calls on SEC to go after major crypto exchanges trading XRP – Regulation Bitcoin News

US lawmaker calls on SEC to go after major crypto exchanges trading XRP – Regulation Bitcoin News

US Congressman Brad Sherman called on the US Securities and Exchange Commission (SEC) to go after major cryptocurrency exchanges that traded xrp, which the regulator considers a security. “It’s easier to catch small fish than big fish, but the big fish that run the big exchanges have done many, many tens of thousands of transactions with xrp,” the lawmaker said.

US Lawmaker Urges SEC to Focus on Major Crypto Exchanges

Congressman Brad Sherman (D-CA), chairman of the House Financial Services Subcommittee on Investor Protection, held a hearing Wednesday to examine the US Securities and Exchange Commission’s (SEC) efforts to address emerging risks and protect investors.

During the hearing, Sherman, who is a senior member of the Foreign Affairs Committee, questioned SEC Enforcement Director Gurbir Grewal about XRP and tether.

The congressman told Grewal, “You’re gone XRP because XRP is security. But you didn’t go after all the major crypto exchanges that handled tens of thousands, if not many more, [XRP] transactions.” He emphasized:

If XRP is a security, and you think it is, and I think it is, why aren’t these crypto exchanges against the law?

He continued: “And, is it enough that crypto exchanges have said, ‘well since we’ve committed tens of thousands of breaches in the past, we promise not to do it again in the future.’ Is that enough to get you off the hook for execution?”

The director of the SEC replied: “I can’t talk about what we watch and don’t watch. We brought exchange cases, we started one against last year Poloniex.”

Sherman replied:

It’s easier to catch small fish than big fish, but the big fish running the big exchanges have done many, many tens of thousands of transactions with XRP.

He added: “You know it’s insurance. This means that they operated the security exchange illegally. They know it’s illegal because they stopped doing it, even though it was profitable. So if they know it’s illegal and you know it’s illegal and I know it’s illegal, I hope you focus on that.”

Turning his attention to the stablecoin tether (USDT), Sherman said, “And then finally we have tether, which is a money market mutual fund in every way.” He noticed that recently USDT “broke the money.”

A California congressman asked the SEC director:

Can you tell us why you went after terra and not tether?

Grewal replied: “It would be inappropriate for me to comment on who we are going and who we are not. But I understand your concerns and have added resources to our crypto assets unit to look at issues that put investors at risk, including the issues you raised in your question.”

It’s the SEC exploring terrausd (UST), an algorithmic stablecoin that collapsed in May along with cryptocurrency terra (LUNA). After the implosion of the two coins, SEC Chairman Gary Gensler warned against it many crypto tokens will fail.

In closing, Sherman told Grewal, “You have to take on some cases that you’re not sure you’re going to win.”

In December 2020, the SEC charged Ripple Labs and its two top executives — CEO Brad Garlinghouse and co-founder Chris Larsen — with $1.3 billion XRP, which the regulator said was “an offer of unregistered securities”. Following the announcement of the lawsuit, crypto exchanges in the US began to be delisted XRPincluding the Nasdaq-listed crypto exchange Coinbase.

Responding to Sherman’s remarks, many people on Twitter were quick to point out that no country, including the US, had determined that XRP is security. Stuart Alderoty, Ripple’s general counsel, tweeted on Wednesday:

When elected officials don’t understand that just filing a lawsuit by the SEC doesn’t determine anything… that’s beyond troubling… Only a court can make a decision (that’s called due process).

During Wednesday’s hearing, and Congressman Tom Emmer (R-MN). criticized the SEC’s approach to regulating the crypto industry. “It’s clear to everyone, except maybe those on the Commission, that the SEC is not regulating in good faith,” he said.

Tags in this story

Brad Sherman’s Crypt, Brad Sherman’s Cryptocurrency, Brad Sherman tether, Coinbase, Congressman Brad Sherman, crypto exchanges, Gary Gensler, Gurbir Grewal, Gurbir Grewal Crypto Exchange, SEC Division of Enforcement, sec tether, Tether

What do you think of Congressman Brad Sherman’s comments? Let us know in the comments section below.

US lawmaker calls on SEC to go after major crypto exchanges trading XRP – Regulation Bitcoin News

Kevin Helms

An Austrian economics student, Kevin discovered Bitcoin in 2011 and has been an evangelist ever since. His interests lie in bitcoin security, open source systems, network effects, and the intersection between economics and cryptography.




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