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. “It’s 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,” said the lawmaker.
US Lawmaker Urges SEC to Focus on Major Crypto Exchanges
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.
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.
The congressman told Grewal: “You’ve gone after XRP because XRP is a security. But you haven’t gone after all the major crypto exchanges that processed tens of thousands, if not far more, [XRP] transactions.” He stressed:
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?
He continued: “And, is it enough that the crypto exchanges have said, ‘well having committed tens of thousands of violations in the past, we promise not to do anymore in the future.’ Is that enough to get you off the hook for enforcement?”
The SEC director replied: “I can’t talk about what matter we are looking at and not looking at. We have brought exchange cases, we brought one last year against Poloniex.”
Sherman responded:
It’s 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.
He added: “You know it’s a security. That means they were illegally operating a security exchange. They know it’s illegal because they stopped doing it, even though it was profitable. So if they know it’s illegal and you know it’s illegal and I know it’s illegal, I hope you focus on that.”
Turning his attention to stablecoin tether (USDT), Sherman said, “And then finally we have tether, which is a money market mutual fund in every way.” He noted that recently USDT “broke the buck.”
The congressman from California asked the SEC director:
Can you tell us why you went after terra but not tether?
Grewal replied: “It would be inappropriate for me…
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