U.S. Congressman Brad Sherman, also the Chairperson of the House Financial Services Subcommittee on Investor Protection, recently requested the United States Securities and Exchange Commission (SEC) to chase major crypto exchanges listing XRP. He came to this conclusion after holding a hearing on Wednesday to determine the SEC’s efforts to handle developing dangers and protection of investors and their funds.
During the discussion, Sherman also questioned Gurbir Grewal, the SEC Director of Enforcement, regarding their take on both XRP and Tether (USDT). He expressed his concerns related to XRP saying:
“You’ve gone after XRP because XRP is a security. But you haven’t gone after all the major crypto exchanges that processed tens of thousands, if not, far more transactions. If XRP is a security, and you think it is, and I think it is, why are these crypto exchanges not in violation of the law?”
Sherman also highlighted the fact that several cryptocurrency exchanges have committed numerous violations in the past. Therefore, there is a need for immediate action and regulation of the crypto framework. To this, the SEC director replied by saying that they can’t reveal the current spheres they are focusing on and the ones they are not. However, the one thing he unveiled was that they last year probed into Poloniex, one of the crypto exchanges listing XRP.
The U.S. Congressman was dissatisfied with such action against these XRP exchanges and stated that:
“It’s easier to go after the small fish than the big fish, but the big fish operating major exchanges did many, many tens of thousands of transactions with XRP. You know it’s a security. That means they were illegally operating a security exchange. They know it’s illegal because they stopped doing it, even though it was profitable. So if they know it’s illegal and you know it’s illegal and I know it’s illegal, I hope you focus on that.”
However, these questions and suggestions are still incomplete as the SEC vs. Ripple lawsuit has not found a conclusion until now. In addition to focusing on crypto exchanges listing XRP, Sherman also urged the SEC to investigate Tether (USDT), which is a stablecoin based on the U.S. Dollar.