CryptoWallCity vs MEXC Exchange

US lawmaker urges SEC to investigate exchanges that allow XRP trading

Representative Brad Sherman, Chairman of the House Financial Services Subcommittee on Investor Protection, held a hearing midweek to review the efforts of the U.S. Securities and Exchange Commission (SEC) to address emerging risks and protect investors in the crypto space.

During the hearing, Mr. Sherman questioned SEC Director of Enforcement Gurbir Grewal about XRP. The official candidly shared that even though the SEC has gone after XRP alleging XRP is a security, the regulator has yet to delve into all of the market-leading crypto exchanges that have dealt with millions of dollars. tens of thousands of XRP transactions. He emphasized:

“If XRP is a security, and the SEC always thinks so, why aren’t crypto exchanges for XRP trading breaking the law?”

Rep. Brad Sherman continued to question whether the SEC would take any action on the matter, to which the SEC Director replied that the agency could not be certain to reach a conclusion about whether it would consider a particular case. possible in the future. However, the SEC will always pursue these goals, as evidenced by the agency’s fight against the Poloniex exchange last year as well as the investigation of Binance.US and CEO Changpeng Zhao for market manipulation in early 2022.

Mr. Sherman stated:

“It’s easier to chase small fish than big fish, but big fish are running exchanges that already do a lot of transactions with XRP.

The SEC knows it’s a security. That means they were illegally operating a stock exchange. I hope you will focus on this point.”

In response to Sherman’s statements, many on Twitter were quick to point out that no country, except the US, is identifying XRP as a security. Incumbent Stuart Alderoty, Ripple’s general counsel, said US officials really don’t understand that the SEC’s filing of a “nonsense” case against XRP.

With related developments, also in this hearing, Representative Tom Emmer had an opposing view when he “strongly” criticized the SEC’s approach to regulating the cryptocurrency industry. Accordingly, he asserted that most of the crackdowns against crypto companies are not under the jurisdiction of the SEC and that the agency is “freely” taking actions that go beyond the limits of many organizations that do not. volunteer cooperation.

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