According to cryptocurrency data site CoinGecko, there are more than 40 cryptocurrency exchanges in the United States.
A series of actions have been taken at the SEC, asserting the regulator's jurisdiction over the cryptocurrency industry and the CFTC's actions on what it calls regulation through enforcement.Following an equally strong response, the staff member said the SEC urgently needs to resolve its dispute with the CFTC over cryptocurrency jurisdiction.If the matter cannot be resolved internally, then lawmakers will have to get involved, and Congress will likely be on the side of the CFTC, he said.
In 2014, long before Ethereum and almost all cryptocurrencies except Bitcoin and its early imitators existed, the CFTC declared its control over what was then a "virtual currency"jurisdiction.Then in 2018, a federal court ruled that the CFTC could prosecute fraud cases involving virtual currencies, according to the CFTC statement.Likewise, the SEC has repeatedly declared that Bitcoin is a commodity.And in June 2018, SEC Director William Hinman said in a speech that he did not consider ethereum to be a security, suggesting it might properly fall under the jurisdiction of the CFTC.
In June, when SEC Chairman Gary Gensler said that Bitcoin was the only cryptoasset he thought could be called a commodity, suggesting that Ethereum was a security, this may be the caseEvidence of change is beginning to emerge.It’s worth noting that while Ethereum itself was not included in the list of nine assets the SEC said in the insider trading charges against the former Coinbase employee, his brother and his friend, the agency specifically mentioned eachAssets are all created on the Ethereum blockchain.
Perhaps self-indulgent, the source described the conversation between the SEC and the CFTC as unproductive, arguing that the final decision on who gets what power may fall onin the hands of lawmakers.
Yesterday, U.S. Senator Debbie Stabenow and Senate Agriculture, Nutrition and Forestry Committee Chairman John Boozman introduced the Digital Goods Consumer Protection Act of 2022 to give the CFTC new powers toRegulate digital goods.Senator Lummis himself and Senator Kirsten Gillibrand proposed the Responsible Finance Innovation Act, a bipartisan legislative proposal for digital asset regulation that is even more comprehensive.
And ironically, Senator Lummis' staff sees a less than 50 percent chance of passing both bills this year.The only way for the two bills to pass this year is if a catastrophic black swan event, such as the collapse of a major U.S. exchange, would allow Cai to convene lawmakers, he said.The cryptocurrency bill most likely to see traction by the end of the year is the recently delayed stablecoin bill, which describes how banks would be allowed to issue their own stablecoins and could be attached to an appropriations bill by the end of the year, sources saysuperior.
A senior executive at a major cryptocurrency exchange also said backstage that, based on what he heard from SEC members, many U.S. cryptocurrency exchanges may have received theWells, who formally notified the company of impending action against them, and most are under investigation.Earlier this week, Binance.US delisted one of the SEC-listed assets.
The executive concluded that these situations are separate from the standard procedures the SEC often does -- such as asking the exchange if there is any communication with the team creating the newly listed asset, whetherContact with the person raising funds for the newly listed asset, or whether the team has made a statement on how the token will accumulate value.
The executive further stated that the SEC has never asked about a Bitcoin fork like Litecoin, but based on recent comments to the House Appropriations Committee, Bitcoin may be aThe situation with commodities may change soon.