Since the crypto industry began to gain traction in the US, the securities regulator SEC has been fighting against the sector. On August 4th, Forbes reported that virtually all crypto firms in the US are in various stages of investigation by the SEC.
Additionally, a staff in the office of a famous lawmaker, Senator Cynthia Lummis, said the regulator wants to probe all crypto exchange firms operating in America.
SEC Moves To Probe Crypto Exchanges In The US
According to a report from Senator Lummis’s office, the US SEC is currently investigating Coinbase. Also, it had set its eyes on the leading crypto exchange giant, Binance.
Meanwhile, both exchange firms have been following the regulations of the agency. Binance.US had to limit some of its services to US citizens.
Recently, the exchange removed an altcoin from its platform. This was after the watchdog claimed they were securities.
However, it appears their effort has not added them to the agency’s good book. Meanwhile, the commodities regulator, the CFTC, appears to be more diplomatic in its regulatory approach.
Presently, there is no legal classification of digital assets in the US. Hence, the SEC’s claim that all digital assets are securities is absurd. The agency is moving beyond its jurisdiction.
Furthermore, Senator Emmer accused the regulator and its chairman, Gary Gensler, of being anti-crypto. He said the agency is fighting to ensure that all digital assets fall under its jurisdiction.
Meanwhile, recent legislation is pushing to put the CFTC in charge of regulating most digital assets. This legislation supports a previous legislation that states the US CFTC should regulate the crypto sector.
SEC Allegedly Sends “Well Notices” To Crypto Firms
However, reports state that the Senate may not pass both legislations in the Senate this year. On June 7th, Senator Lummis and Gillibrand submitted a bill to classify digital assets in the crypto sector.
An official from a cryptocurrency exchange claims that the SEC’s regulatory campaign is harming the sector. He claims that the agency has sent Wells Notices to various exchanges in the country.
When legal action is taken against a firm, these Well Notices are used to notify the company formally. The anonymous official added that these situations differ from customary SEC practices.
Binance.US removed the AMP token from its database this week. The exchange was delisting an asset that the SEC regarded as a security.
It seems doubtful that the Senate will resolve the fight for regulatory oversight over cryptocurrency in America anytime soon. This would only increase the uncertainty for businesses attempting to comply with regulations. Also, it could scare investors from entering the sector.