SEC is investigating Coinbase, Binance and 40 US cryptocurrency exchanges

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

The SEC’s battle against Ripple took a bizarre turn recently after the regulator refused to authenticate statements from former SEC director William Hinman in which 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 widening its net to investigate over 40 US cryptocurrency exchanges, including  the likes of Coinbase, and Binance. 

Also read: Ripple battles the SEC with massive cross-border payment growth

SEC v. Ripple update

In the legal battle between the US Securities and Exchange Commission and Ripple, the regulator has refused to accept or deny the authenticity of William Hinman’s statements regarding the definition of cryptos as securities. In a key 2018 speech, the former director of corporate finance announced that the commission would not treat Ethereum or Bitcoin as securities. Documents surrounding his statements have since become key evidence in the case. Jay Clayton, SEC Chairman, recently noted the difference between cryptocurrencies and digital tokens. Clayton noted that cryptocurrencies are “replacements for sovereign currencies” and are not securities. 

It is key for the defense counsel to have the regulator authenticate Hinman’s documents. Defense Attorney James K Filan believes that the SEC will not consent to Ripple’s permission to authenticate videos of seven SEC officials’ public remarks in connection with the case. Filan argues that the SEC seeks to reopen discovery.

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

The SEC is investigating Coinbase, Binance and US cryptocurrency exchanges

The SEC’s ongoing investigation of cryptocurrency exchanges is another attempt to regulate cryptocurrencies by enforcement. According to Colin Wu, a Chinese Journalist, this attempt is not only limited to Coinbase. He cites information from Forbes, that a staff member in the office of Senator Cynthia Lummis revealed that the SEC is investigating 40 US cryptocurrency exchanges, including Binance. 

XRP enters accumulation phase

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

Analysts at FXStreet have a contrasting outlook on XRP. They predict a decline in XRP price, arguing the altcoin could retrace to stable support levels.