SEC to investigate all Crypto Exchanges including Binance

According to a staff from Senator Cynthia Lummis’ office U.S. Securities and Exchange Commission which is currently investigating Coinbase, the country’s largest crypto exchange, has also set its eyes on global giant Binance.

sec-to-investigate-crypto-exchanges

Both Coinbase and Binance have sloped over backward to subdue regulators with the latter operating a separate division (Binance.US) with restricted services to American customers.

Yet, this is still not enough for the SEC, whereas the more crypto-friendly regulator, the Commodity Futures Trading Commission (CFTC), is more likely to adopt an approach that is not based on enforcement and lawsuits but on supporting digital currencies.

According to a report, Every U.S. crypto exchange is in different stages of being scrutinized by the SEC.

Also read, CFTC will gain exclusive power with new US Senate Bill

Cryptocurrencies are not securities

Regardless of what SEC does, crypto assets have yet to be officially categorized as securities so the SEC is technically operating past its jurisdiction.

This was indicated by Republican Senator Tom Emmer. The senator points out last month that the agency and its anti-crypto chair Gary Gensler were hellbent on expanding the size of its crypto enforcement division utilizing enforcement to unconstitutionally extend its jurisdiction.

However, there is a glimmer of hope, as the SEC urgently desires to settle its dispute with the CFTC over jurisdiction. In addition, if the matter isn’t resolved internally, legislators would have to get involved, and Congress is probably to side with the CFTC, said an unknown official.

Two bills have been presented recently to give the CFTC more jurisdiction over cryptocurrencies, nonetheless, the official expressed that there was less than a 50% chance of either being enacted this year. The Lummis-Gillibrand bill was proposed on June 7, and the Digital Commodities Consumer Protection Act was reported this week.

SEC Related: SEC charges 11 people involved in a crypto pyramid scheme

SEC targeting U.S Exchanges

According to one crypto exchange executive, many U.S. exchanges have received Wells Notices from the SEC as part of its enforcement endeavor. These are utilized to formally notify the companies when action is about to be taken against them. The anonymous executive also conveyed that these illustrations are separate from standard SEC practices.

Binance.US has already delisted an asset considered a security by the SEC this week when it dropped the AMP token.

The battle for regulatory authority over crypto in America gets up and it is unlikely to be ended any time soon which only serves to extend the tension for companies trying to relent.


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