The SEC plans to investigate all the cryptocurrency exchanges operating in the United States besides Coinbase and Binance. As proposed in two recently introduced bills, the CFTC may have more jurisdiction over crypto asset regulation.
The cryptocurrency exchanges operating in the United States will not escape regulation, according to the staff of Senator Cynthia Lummis.
Coinbase, the largest cryptocurrency exchange in the country, is under the scrutiny of the US Securities and Exchange Commission (SEC). The federal agency also plans to investigate Binance, the crypto asset marketplace with the highest trading volume.
Concerning Binance, it has even had to operate a separate division for US customers, seeking to appease the SEC. Coinbase has also struggled to prevent being subject to tighter regulations by the federal agency.
Regardless of the efforts of both exchanges, the SEC considers this is not enough. However, the Commodity Futures Trading Commission (CFTC), a more crypto-friendly regulator, might use an approach not based on enforcement and lawsuits.
According to Forbes, the staff of the SEC investigates all cryptocurrency exchanges operating in the United States at various levels.
The SEC Does Not Consider Cryptocurrencies Securities Yet
The SEC is operating beyond its jurisdiction, as it has not yet officially classified cryptocurrencies as securities.
In July, Republican Senator Tom Emmer talked about the federal agency and its anti-cryptocurrency chairperson, Gary Gensler. He said they want to expand their crypto enforcement division by unconstitutionally expanding their jurisdiction.
However, an anonymous official said the SEC still needed to settle its dispute with the CFTC over jurisdiction over the crypto market. He explained that lawmakers would have to interfere and that Congress might support the CFTC if they did not solve the issue internally.
The CEFT might have more jurisdiction over cryptocurrencies, as stated in two recently introduced bills. However, an anonymous official said the probabilities of Congress passing it this year were below 50%.
The introduction of the Lummis-Gillibrand bill in June preceded the recently announced Digital Commodities Consumer Protection Act.
The SEC Expresses Its Position against Crypto Assets
A cryptocurrency exchange executive believes many US-based platforms have received SEC Wells Notices. The federal agency uses them to inform companies when they will take action against them. The anonymous executive highlighted that these measures go against the standard procedures of the SEC.
Over the last week, the SEC caused Binance to delist the AMP token, which the former deems a security. That has affected those investors putting their money in that crypto asset.
Regulatory agencies will continue fighting for regulatory control over cryptocurrencies in the United States. However, that might not conclude soon, thus prolonging the uncertainty for the exchanges struggling to comply.
Cryptocurrencies have become crucial in the economic system, which regulators do not overlook. The SEC is only one example of what happens in many countries, where the authorities seek to control or ban those assets.
Bitcoin is trading at around USD 23,119 and has accumulated a 2.4% loss over the last week. While its trading volume is above USD 26.62 billion, its market capitalization is about USD 441.87 billion, according to CoinGecko.
By Alexander Salazar
