SEC Targeting All US-Based Crypto Exchanges in Widespread Securities Investigation: Report
The U.S. Securities and Exchange Commission (SEC) is reportedly investigating every US-based crypto exchange platform, including Binance.
According to a new Forbes report, a US Senator Cynthia Lummis staffer is revealing that the regulatory body is looking into all 40 US-based crypto exchanges, including the world’s biggest crypto exchange platform Binance, for potential violations of the law.
The staffer says that the platforms are in various stages of investigation and that the SEC is eagerly trying to resolve its dispute with the Commodities Futures Trading Commission (CTFC) over which agency has ultimate jurisdiction over crypto assets.
The report also finds that one high-ranking executive from a crypto exchange said that based on what he’s heard from members of the SEC, many exchange platforms have likely received Well Notices, formal notices that legal actions will be taken against them.
Recently, Binance.US said it will delist AMP, an Ethereum (ETH)-based crypto asset that aims to collateralize payments on the Flexa network because the SEC deemed it as a security that falls under its jurisdiction.
Binance says it’s removing AMP out of caution.
“Last week, the Securities and Exchange Commission (SEC) filed securities fraud charges against a former employee of Coinbase, among others. In its suit, the SEC named nine digital assets that it alleges are securities. Of those nine tokens, only Amp (AMP) is listed on the Binance.US platform.
Out of an abundance of caution, we have decided to delist the AMP token from Binance.US, effective August 15, 2022. While trading of AMP may resume at some point in the future on the Binance.US platform, we are taking this step now until more clarity exists around the classification of AMP.”
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