SEC to Investigate Binance Along With Several Major Crypto Exchanges

According to Lummis office personnel, the U.S. Securities and Exchange Commission (SEC) has started investigating coinbase coinbase - support@coinbase.com WalletCentralised Exchange , the country’s largest exchange. It has set its sight on global giant Binance Binance - binance@miceneurol.com Centralised ExchangeCryptocurrenciesTrading AppCryptocurrency investment as well. 

Both the firms have gone above and beyond to appease the regulators, with the latter operating a separate division (Binance US) with limited services to American customers. 

The Commodity Futures Trading Commission (CFTC), a more crypto-friendly regulator, is more likely to adopt a different approach than the , which is not based on enforcements and lawsuits. 

A Forbes report on August 4 states that every US crypto exchange is in various stages of investigation by the SEC staff. 

The SEC is technically operating outside its jurisdiction as crypto assets have not been officially classified as securities. 

The agency and its anti-crypto chief gary gensler gary gensler Gary Gensler is the chairman of the U.S. Securities and Exchange Commission (SEC). His studies in finance and blockchain at MIT have helped him develop U.S. cryptocurrency regulations and policies. Quick Facts Full name Gary Scott Gensler Birth 18-10-1957, Baltimore, Maryland, United States Nationality American Education MBA from the University of Pennsylvania Marital status Married to Francesca Danieli (1986-2006) Net worth Estimated $100 million   Gensler has advocated for enhanced supervision of digital assets, seeking to regulate cryptocurrencies similar to securities. His work at the SEC has focused on safeguarding investors, regulating crypto exchanges, and establishing stablecoin policies.   Gary Gensler - Career Highlights 1997 – Became Assistant Secretary of the Treasury. 2009 – Led CFTC, regulating financial derivatives post-2008 crisis. 2018 – Taught blockchain and crypto at MIT. 2021 – Appointed SEC Chairman, focusing on crypto regulations. 2022 – Proposed stricter rules for crypto exchanges. 2023 – Took legal action against major crypto firms. 2024 – Advocated for stronger stablecoin and DeFi regulations.   Gary has collaborated with multiple lawmakers in formulating crypto policies. Even with disagreements with crypto investors regarding crypto policies, he continues to be a key player in the changing dynamic between regulatory frameworks and blockchain advancement.   Awards & Recognitions of Gary Gensler Year Institution  Description 2009 U.S. Treasury Financial Regulation Leader 2018 MIT Blockchain & Crypto Educator 2021 SEC SEC Chairman Overseeing Crypto Policies 2023 Bloomberg Most Influential Regulator in Crypto 2024 Forbes Top Policy Maker in Digital Assets   Useful Links to Connect With Gary Gensler Platform Link X (formerly Twitter) twitter.com/GaryGensler CFTC website Chairman Gary Gensler   Chairman were “hellbent on expanding the size of its crypto enforcement division using enforcement to unconstitutionally expand its jurisdiction,” according to Republican Senator Tom Emmar, who gave a statement last month. 

However, there is a glimmer of light since, according to the unnamed official, the SEC urgently wants to settle its disagreement with the CFTC regarding crypto jurisdiction.

“If the matter isn’t resolved internally, legislators would have to get involved, and that Congress is likely to side with the CFTC,” he said.

The CFTC has more jurisdiction over cryptocurrencies under the two recently introduced bills, however, the official said there was less than a 50 percent chance of them being passed this year. The Lummis-Gillibrand bill was submitted on June 7, and the Digital Commodities Consumer Protection Act was announced this week.

According to a crypto exchange executive, many US exchanges have received Wells Notices from SEC as a part of its enforcement drive. It’s the formal way to inform companies about actions being taken against them. The unnamed executive also said these are separate instances from the standard SEC procedures. 

Binance US has already delisted the AMP token from its list this week, delisting an asset that the SEC had regarded to be a security.

The battle for regulatory control over crypto in America is on and it is unlikely to end soon, which only serves to prolong the uncertainties for companies trying to comply.