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Congressman wants SEC to penalize crypto exchanges for trading XRP
The SEC's enforcement division was criticized on Tuesday for its regulation of the cryptocurrency sector. Congressman Tom Emmer said the SEC had become a "power-hungry regulator" under Gary Gensler. Speaking before the House Committee on Financial Services, U.S. Rep. Brad Sherman said the U.S. Securities and Exchange Commission (SEC) had failed to prosecute cryptocurrency exchanges that supported crypto trading in Labs' Ripple XRP tokens. The SEC's enforcement unit was cross-examined about its regulation of crypto platforms in a congressional hearing on Tuesday. “If XRP is a security, and you think it is, and I think it is, why do these...
Congressman wants SEC to penalize crypto exchanges for trading XRP
- Die Durchsetzungsabteilung der SEC wurde am Dienstag wegen ihrer Regulierung des Kryptowährungssektors kritisiert
- Der Kongressabgeordnete Tom Emmer sagte, die SEC sei unter Gary Gensler zu einer „machthungrigen Regulierungsbehörde“ geworden
Testifying before the House Committee on Financial Services, U.S. Rep. Brad Sherman said the U.S. Securities and Exchange Commission (SEC) failed to prosecute cryptocurrency exchanges that supported cryptocurrency trading in Labs' Ripple XRP token.
The SEC's enforcement unit was cross-examined about its regulation of crypto platforms Congressional hearing on Tuesday.
“If XRP is a security, and you think it is, and I think it is, why aren’t these crypto exchanges breaking the law?” Sherman, the called for a complete ban on cryptocurrencies in 2019, called for SEC Department Chief Gurbir Grewal.
Grewal defended the commission, saying it took action against the Delaware-based exchange Poloniex last year. Sherman said, “It’s easier to go after the little fish than the big fish.”
The SEC has been embroiled in a protracted legal battle over Ripple Labs since December 2020, accusatory The company and two executives have raised at least $1.3 billion by selling XRP - which the regulator has classified as an unregistered security.
Ripple Labs has led this battle by claiming that the token and underlying infrastructure are sufficiently decentralized to not be a token Investment contract and therefore should not be registered under the SEC.
US platforms operated by several exchanges including Coinbase, Binance, FTX and Kraken have suspended XRP trading for US residents following the SEC's lawsuit against Ripple Laboratories.
Courts have yet to decide whether XRP is a security
No formal finding has established that XRP is actually a security. Ripple Labs General Counsel Stuart Alderoty further said Twitter that “the mere filing of a case by the SEC determines nothing.”
Still, Sherman said during the hearing that "the department has determined that XRP is a security and is going after XRP, but for reasons that I will question, has not gone after the exchanges where tens of thousands of illegal securities transactions have occurred."
XRP fell by more than half right after the SEC lawsuit, but is now trading 60% above those levels.
However, the token is down 65% so far this year but has gained nearly 17% in the last month, along with recovering crypto markets, data from Blockworks Research shows.
Representative Tom Emmer also separately criticized the SEC during the hearing, saying it had not clarified which areas of the crypto industry fell under its jurisdiction and that its Strategic Hub for Innovation and Financial Technology (FinHub) had "dissolved" under Chairman Gary Gensler.
“Under Chairman Gensler, the SEC has become a power-hungry regulator that politicizes enforcement, enticing companies to ‘come and talk’ with the Commission, then hitting them with enforcement actions and discouraging good faith cooperation,” Emmer said.
This pledged to double the number of employees in its crypto enforcement department to 50 in May.
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The post Congressman Wants SEC to Punish Crypto Exchanges for Trading XRP is not financial advice.