{"id":5854,"date":"2022-07-23T03:34:41","date_gmt":"2022-07-23T03:34:41","guid":{"rendered":"https:\/\/cryptoheretostay.com\/?p=5854"},"modified":"2022-07-23T03:34:42","modified_gmt":"2022-07-23T03:34:42","slug":"us-lawmaker-urges-sec-to-go-after-major-crypto-exchanges-that-traded-xrp","status":"publish","type":"post","link":"https:\/\/cryptoheretostay.com\/?p=5854","title":{"rendered":"US Lawmaker Urges SEC to Go After Major Crypto Exchanges That Traded XRP"},"content":{"rendered":"<p> <script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"crypto\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n<\/p>\n<p><strong>U.S. Congressman Brad Sherman has urged the U.S. Securities and Exchange Commission (SEC) to go after major cryptocurrency exchanges that traded xrp, which the regulator deems a security. \u201cIt\u2019s easier to go after the small fish than the big fish, but the big fish operating major exchanges did many, many tens of thousands of transactions with xrp,\u201d said the lawmaker.<\/strong><\/p>\n<h2>US Lawmaker Urges SEC to Focus on Major Crypto Exchanges<\/h2>\n<p>Congressman Brad Sherman (D-CA), chairman of the House Financial Services Subcommittee on Investor Protection, held a hearing Wednesday to examine the efforts by the U.S. Securities and Exchange Commission (SEC) to address emerging risks and to protect investors.<\/p>\n<p>During the hearing, Sherman, who is a senior member of the Foreign Affairs Committee, questioned SEC Director of Enforcement Gurbir Grewal regarding XRP and tether.<\/p>\n<p>The congressman told Grewal: \u201cYou\u2019ve gone after XRP because XRP is a security. But you haven\u2019t gone after all the major crypto exchanges that processed tens of thousands, if not far more, [XRP] transactions.\u201d He stressed:<\/p>\n<p>If XRP is a security, and you think it is, and I think it is, why are these crypto exchanges not in violation of law?<\/p>\n<p>He continued: \u201cAnd, is it enough that the crypto exchanges have said, \u2018well having committed tens of thousands of violations in the past, we promise not to do anymore in the future.\u2019 Is that enough to get you off the hook for enforcement?\u201d<\/p>\n<p>The SEC director replied: \u201cI can\u2019t talk about what matter we are looking at and not looking at. We have brought exchange cases, we brought one last year against Poloniex.\u201d<\/p>\n<p>Sherman responded:<\/p>\n<p>It\u2019s easier to go after the small fish than the big fish, but the big fish operating major exchanges did many, many tens of thousands of transactions with XRP.<\/p>\n<p>He added: \u201cYou know it\u2019s a security. That means they were illegally operating a security exchange. They know it\u2019s illegal because they stopped doing it, even though it was profitable. So if they know it\u2019s illegal and you know it\u2019s illegal and I know it\u2019s illegal, I hope you focus on that.\u201d<\/p>\n<p>Turning his attention to stablecoin tether (USDT), Sherman said, \u201cAnd then finally we have tether, which is a money market mutual fund in every way.\u201d He noted that recently USDT \u201cbroke the buck.\u201d<\/p>\n<p>The congressman from California asked the SEC director:<\/p>\n<p>Can you tell us why you went after terra but not tether?<\/p>\n<p>Grewal replied: \u201cIt would be inappropriate for me to comment on who we are going after and not going after. But I understand your concerns and we\u2019ve added resources to our crypto asset unit to look at issues that put investors at risk, including the issues you\u2019ve raised in your question.\u201d<\/p>\n<p>The SEC is investigating terrausd (UST), the algorithmic stablecoin that collapsed in May along with cryptocurrency terra (LUNA). Following the implosion of the two coins, SEC Chairman Gary Gensler warned that a lot of crypto tokens will fail.<\/p>\n<p>In conclusion, Sherman told Grewal: \u201cYou\u2019ve to take on some cases that you\u2019re not certain of winning.\u201d<\/p>\n<p>In December 2020, the SEC charged Ripple Labs and its two top executives \u2014 CEO Brad Garlinghouse and co-founder Chris Larsen \u2014 with conducting $1.3 billion of XRP, which the regulator said was an \u201cunregistered securities offering.\u201d Following the lawsuit announcement, crypto exchanges in the U.S. began delisting XRP, including the Nasdaq-listed crypto exchange Coinbase.<\/p>\n<p>Responding to Sherman\u2019s statements, many people on Twitter were quick to point out that no country, including the U.S., has determined that XRP is a security. Stuart Alderoty, general counsel for Ripple, tweeted Wednesday:<\/p>\n<p>When elected officials don\u2019t understand that the mere filing of a case by the SEC doesn\u2019t determine anything \u2026 it\u2019s more than concerning \u2026 Only the court can make a determination (it\u2019s called due process).<\/p>\n<p>During Wednesday\u2019s hearing, Congressman Tom Emmer (R-MN) also criticized the SEC\u2019s approach to regulating the crypto industry. \u201cIt seems clear to everyone, except maybe those at the Commission, that the SEC is not regulating in good faith,\u201d he said.<\/p>\n<p>Tags in this story<\/p>\n<p>Brad Sherman crypto, Brad Sherman cryptocurrency, Brad Sherman tether, Coinbase, Congressman Brad Sherman, crypto exchanges, Gary Gensler, Gurbir Grewal, Gurbir Grewal crypto exchanges, SEC enforcement division, sec tether, Tether<\/p>\n<p><em><strong>What do you think about the comments by Congressman Brad Sherman? Let us know in the comments section below.<\/strong><\/em><\/p>\n<p>Kevin Helms <\/p>\n<p class=\"article__body__author__info__about\">\nA student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.<\/p>\n<p><i class=\"td-icon-font td-icon-mail-1\"\/><\/p>\n<p class=\"images_credits\"><em>Image Credits: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n<p><strong>Disclaimer<\/strong>: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.<\/p>\n<p>More Popular NewsIn Case You Missed It<\/p>\n<p><script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"bitcoin\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n<br \/><a href=\"https:\/\/news.bitcoin.com\/us-lawmaker-urges-sec-to-go-after-major-crypto-exchanges-that-traded-xrp\/\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>U.S. Congressman Brad Sherman has urged the U.S. Securities and Exchange Commission (SEC) to go after major cryptocurrency exchanges that traded xrp, which the regulator deems a security. \u201cIt\u2019s easier to go after the small fish than the big fish, but the big fish operating major exchanges did many, many tens of thousands of transactions [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":5855,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_wp_rev_ctl_limit":""},"categories":[1],"tags":[],"class_list":["post-5854","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto-updates"],"_links":{"self":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/5854","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=5854"}],"version-history":[{"count":1,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/5854\/revisions"}],"predecessor-version":[{"id":5856,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/5854\/revisions\/5856"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/media\/5855"}],"wp:attachment":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=5854"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=5854"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=5854"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}