Senator Lummis Staffer Reveals That Every Crypto Exchange in The U.S is Under SEC Investigation

• The SEC is reported to be investigating every cryptocurrency exchanged based in the US is under investigation by the SEC.
• There remains controversy about whether the SEC or the CFTC should be regulating the cryptocurrency market.

Some of the largest crypto exchanges in the world are being investigated by the U.S. Securities and Exchange Commission (SEC) The revelation has been made by one of Senator Lumis’s staffers. There are more than 40 U.S. cryptocurrency exchanges including Binance, the largest crypto exchange in the world as well as Coinbase, the only publicly listed crypto exchange. According to the informer, all of these exchanges are in different stages of investigations.

Interestingly, this revelation perfectly aligns with a prediction by XRP lawyer John E. Deaton. As he reiterated following the exposure, the lawyer predicted earlier that the SEC would go after crypto exchanges.

Brad, I hate to be that guy – but go back and look at my old tweets – I say the SEC will sue an exchange or more than one. The SEC is likely to pick 2-4 exchanges that each sale 5-10 of the same tokens the SEC claims are securities. It could be 1 Complaint 🆚 several defendants. https://t.co/n7Ixf8lsQ2

— John E Deaton (@JohnEDeaton1) August 5, 2022

The lawyer has for nearly two years trying to disprove the SEC’s claim that XRPs are securities. Like most, he views that the SEC has been overstepping in its reach to regulate the crypto space. Furthermore, the agency has been accused of taking a “regulation through enforcement” approach.

Related: 11 INDIVIDUALS ARRESTED BY THE US SEC IN A $300M CRYPTO PYRAMID SCHEME

Further evidence that the SEC could indeed be investigating crypto exchanges has come in the form of a senior executive to one of the top crypto exchanges in the U.S who has heard chatter from members of the SEC that a number of exchanges have received Wells Notices used to formally inform companies when an action is about to be brought against them.

Does the SEC have jurisdiction?

Although the SEC continues to take the regulatory domain of the crypto space, there’s continued ambiguity about whether the SEC or the U.S Commodity Futures Trading Commission (CFTC) should be regulating the crypto space. Just a few days ago, a new Senate bill clarifies that Bitcoin and Ether are classified as commodities, as opposed to securities.

Related: “FIRE GARY GENSLER AS SEC CHAIRMAN” PETITION GAINING TRACTION AFTER ACCUSATIONS OF CORRUPTION AND MARKET MANIPULATIONS

Of note, the SEC is nearly six times larger than the CFTC indicating it has a higher capacity to regulate crypto. However, it only has jurisdiction over securities while the CFTC is in charge of commodities that cryptocurrencies have largely been classified as. There are indications that the issue could be solved internally with jints that the two agencies could work together. However, it’s more likely that legislators will have to step in and assign one of the two agencies.