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The SEC is investigating Coinbase, Binance and 40 US cryptocurrency exchanges

  • A staffer in US Senator Cythia Lummis’ office said the SEC is investigating 40 cryptocurrency exchanges in the US.
  • In a recent development in SEC v. Ripple refused the regulator to authenticate or dispute the authenticity of Hinman’s statements
  • Analysts believe that XRP has entered an accumulation phase where the altcoin is preparing for a massive rally.

The SEC’s fight against Ripple recently took a bizarre turn after the regulator refused to confirm statements by former SEC Director William Hinman that he said cryptos should not be treated with the same oversight as securities. In a separate development, a source inside the government said the regulator is currently expanding its network to probe over 40 US cryptocurrency exchanges, including Coinbase and Binance.

Also read: Ripple is fighting the SEC with massive growth in cross-border payments

SEC v. Ripple update

In the legal battle between the U.S. Securities and Exchange Commission and Ripple, the regulator has refused to acknowledge or dispute the authenticity of William Hinman’s statements on the definition of cryptos as securities. In a key 2018 speech, the former corporate finance director announced that the commission would not treat Ethereum or Bitcoin as securities. Documents related to his statements have since become important pieces of evidence in the case. Jay Clayton, Chairman of the SEC, recently pointed out the difference between cryptocurrencies and digital tokens. Clayton noted that cryptocurrencies are “substitutes for government currencies” and not securities.

For the defense attorney, it is crucial that the regulator certifies Hinman’s documents. Defense attorney James K. Filan believes the SEC will not agree to Ripple’s permission to authenticate videos of the public statements made by seven SEC officials related to the case. Filan argues that the SEC is trying to reinstate the discovery.

James K. Filan, the defense attorney, shared an update in a recent tweet:

The SEC is investigating Coinbase, Binance and US cryptocurrency exchanges

The ongoing SEC investigation into cryptocurrency exchanges is another attempt to regulate cryptocurrencies through enforcement. According to Colin Wu, a Chinese journalist, this attempt is not just limited to Coinbase. He cites information from Forbes that a staffer in Senator Cynthia Lummis’ office revealed that the SEC is investigating 40 US cryptocurrency exchanges, including Binance.

XRP is entering the accumulation phase

CryptoWhale, a leading crypto analyst, believes that XRP has entered an accumulation phase. Earlier, the altcoin collapsed under selling pressure as the SEC fought a legal battle against the largest public holder of XRP. CryptoWhale believes that XRP price is preparing for a breakout and eventual upward move.

FXStreet analysts have a conflicting view on XRP. They are forecasting a drop in XRP price and arguing that the altcoin could return to stable support levels.

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