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US Congressman Brad Sherman Asks Why SEC Didn’t Go After XRP-Traded Cryptocurrency Exchanges ⋆ ZyCrypto

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The Securities and Exchange Commission (SEC) is behind the financial regulator’s legal leniency against a major cryptocurrency exchange that has processed a sizeable amount of the XRP token despite classifying the asset as a security. It received sharp criticism from US lawmakers who questioned why.

Brad Sherman wants the SEC to focus more on ‘big fish’ activities

During an oversight hearing of the House Financial Services Committee on July 19, Rep. and senior member of the Foreign Relations Committee, Brad Sherman, discussed why he chose to file a lawsuit against a major cryptocurrency exchange. He asked the SEC if he refused and criticized Gurbir Grewal, the SEC’s chief executive officer. As a security, he filed a lawsuit against XRP, but overlooked the activity of a top exchange that processed thousands of XRP-related transactions.

“If XRP is a security, and you think so, and I think so, why aren’t these cryptocurrency exchanges violating the law?” Nonetheless, I asked if promises of future compliance from cryptocurrency exchanges would be enough to acquit them.

Responding to a question posed by Rep. filed further lawsuits against Poloniex as defense.

Opposing Grewal’s defense, Sherman pointed out that exchanges like Poloniex are “little fish.” “The tycoons who run the major exchanges have done tens of thousands of transactions in XRP. Security, you know. he said, asking the SEC to focus on that.

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Congressman Sherman Calls for Complete Ban on Cryptos

Brad Sherman hasn’t been the biggest fan of the growing crypto industry.In May 2019, members of Congress called for a complete ban on digital assets. “I am looking for a colleague to work with me to introduce a bill banning the purchase of cryptocurrencies by Americans,” he said at a meeting of the House Financial Services Committee.

Sherman, who has a lot of respect for the dollar, said crypto enthusiasts are trying to replace fiat currencies and undermine the “power” that the dollar brings to the United States. His SEC action in response to his recent calls for focused investigations into major exchanges such as Binance and his Coinbase is something to be expected in the crypto space.

In December 2020, the SEC filed a lawsuit against Ripple Labs and two of its executives for profiting from the sale of XRP. Instead of complying with regulatory demands, Ripple Labs decided to go to court. The lawsuit has been going on for almost two years, and a recent ruling ruled him in Ripple’s favor.

https://zycrypto.com/us-rep-brad-sherman-questions-why-sec-hasnt-gone-after-crypto-exchanges-that-had-traded-in-xrp/ US Congressman Brad Sherman Asks Why SEC Didn’t Go After XRP-Traded Cryptocurrency Exchanges ⋆ ZyCrypto

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