If XRP is security then why are crypto exchanges not in violation of law, congressperson asks
Brad Sherman raised questions on the working system of the US securities body on the Crypto industry. Brad dragged the matter of Ripple vs SEC to explain his point of view that SEC enforcement is not much clear.
Brad Sherman is a congressperson. In the past, Brad called for banning digital assets in the United States. Now at the latest, he raised very sensitive questions on the Securities and Exchange Commission’s (SEC) approach to enforcement among major crypto platforms.
On 19 July, Before the House Committee on Financial Services, Brad said that Gurbir Grewal, enforcement director at SEC agency, needed to show fortitude and courage when initiating securities lawsuits against cryptocurrency companies in the US.
In particular, Brad asked why the SEC agency did not consider that the majority of the crypto exchanges, which are providing thousands of cryptocurrency trade services including XRP trade, violated securities law because XRP is unregistered security as per the lawsuit of SEC vs Ripple.
“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 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?’”
In this way, Congressperson criticized the enforcement system of the agency against crypto companies and tokens.
Mr. Grewal responded to this question of the Congressperson and said that particular crypto platforms are only small fish. In particular, he pointed out the violation of securities law by the Poloniex exchange, which was under the radar of the agency. Grewal noted that the majority of the crypto exchanges like Kraken, Coinbase, and BinanceUS stopped providing trading, even it was profitable.
Sec director Grewal indirectly tried to say that the lawsuit against Ripple (XRP) resulted in some better results, where the majority of the exchanges stopped providing XRP trading.
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