Binance is the largest crypto exchange in the world, but the company is still in the crosshairs of some policymakers. The US Securities and Exchange Commission (SEC) in particular is often not very positive about the company. Now the regulator thinks so the American branch of Binance, i.e. Binance.US, offers unregistered securities.
Binance is ‘exchange of the unregistered securities’
Binance wilthe end of last year’s assets take over the bankrupt crypto company Voyager, but the SEC does not think this is a good plan. But the policymaker does not mention that Binance, for example, would become too big. Sometimes the news that Binance has become very big could influence what the SEC thinks about the acquisition. Instead, the SEC referred to the transaction as an acquisition of unregistered securities — again.
This is a term that the SEC has been using very often against the crypto industry in recent months. The securities market is exactly what the SEC has jurisdiction over, but the judge finds that in Voyager’s bankruptcy of SEC but exaggerates.
The SEC’s Senior Trial Attorney William Uptegrove believes that the sale of Voyagers VGX tokens has characteristics of the sale of securities. Securities include stocks and bonds.
The institute also considers Binance.US, the American branch of Binance, to be an ‘exchange for unregistered securities’, writes CoinDesk. Earlier this week, the judge found it nonsense that the SEC was so fiercely against the deal between Binance and Voyager. He felt the SEC had few arguments for why VGX’s sales resembled a securities transaction.
According to the SEC’s lawyer, creditors were insufficiently warned that Voyager may be an unregistered security. Binance would do this on a large scale according to the SEC, and Upthegrove implied that this characterizes Binance.
SEC is tough on crypto companies
The SEC has been making this argument a lot lately. Not only does the lawsuit between the SEC and Ripple revolve around exactly this principle, various crypto exchanges have also been investigated for offering such tokens. The SEC also now believes that crypto staking is not allowed, again for the same reason. It even won a lawsuit against Kraken because this would apply.
