(TokenPost) - Binance.US, the leading cryptocurrency exchange, has incurred the wrath of the U.S. Securities and Exchange Commission (SEC) over concerns about its operation as an unlicensed securities exchange within the country.
The regulatory body has also raised questions about the legality of Voyager Digital's VGX token sales which could possibly be breaching federal securities regulations.
During a recent bankruptcy hearing examining the potential sale of Voyager to Binance.US, SEC senior trial attorney William Uptegrove revealed the agency's stance to Judge Michael Wiles of the Southern District Bankruptcy Court in New York. Wiles noted that the SEC provided limited information pertaining to its opposition to the Voyager transaction.
Uptegrove stated that the SEC staff's understanding of VGX token sales suggested that it is functioning as a securities transaction. Furthermore, he raised the suspicion that Binance.US operates an unregistered securities exchange in the United States. However, he made it clear that his statement did not necessarily reflect the views of the five SEC commissioners. For the enforcement action to commence, the staff must propose it before a commission majority confirms it.
In response, a Binance.US representative expressed sadness over the allegations and demanded clarity on which assets the SEC considers securities on their platform. The company also stressed its commitment to support a comprehensive regulatory framework established by Congress that nurtures innovation in the United States. SEC Chair Gary Gensler has acknowledged previously that most cryptocurrency platforms should be governed as national securities exchanges, subject to the agency's regulatory compliance and disclosure rules.
As part of Voyager's Chapter 11 bankruptcy restructuring, it is proposing to sell its assets to Binance.US. Creditors representing 97 percent of Voyager's interests have backed this offer. The hearing is heading to its third day as of writing.
By TokenPost
May 3, 2023
