Here’s how major cryptocurrency firms like Binance, Coinbase, and Ripple are responding to ongoing civil cases brought against them by United States regulators, including the Securities and Exchange Commission (SEC).
- Gary Gensler, SEC chair since 2021, has been criticized for his “regulation by enforcement” approach to crypto companies and offerings.
- Ripple received a partial summary judgment in July that its token XRP was largely not a security.
- Coinbase targeted the SEC, claiming the exchange tried to register without success or proper feedback.
- Prometheum, a crypto firm, received approval from the Financial Industry Regulatory Authority (FINRA) as a special purpose broker-dealer for digital asset securities.
- Some crypto companies have been working to rewrite or amend existing laws in their favor and to the detriment of retail investors.
However, Prometheum’s approval has led to calls for an investigation into the firm for potential unfair advantages and connections with the SEC.
It remains to be seen if Prometheum’s approach will work for other players in the space or for new projects facing regulatory challenges in the US. The SEC has indicated that it will continue to bring actions against firms it sees as violating securities laws.
SEC Chair Gary Gensler will be testifying before the US House Financial Services Committee on September 27 to discuss SEC oversight and policies on digital asset custodial activities.
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