The US Securities and Exchange Commission (SEC) has launched an investigation into Binance’s cryptocurrency BNB.
Bloomberg reports that the SEC wants to determine whether BNB is an unregistered security.
Binance held the initial coin offering (ICO) of BNB in July 2017. The stock market raised $15 million at that time.
According to Bloomberg, the investigation has yet to come to a conclusion. Based on the outcome of the investigation, the SEC may not take legal action against Binance.
BNB, which has grown considerably in 2021, continues to be the fifth largest cryptocurrency by market capitalization. The asset fell by around 5% after the news.
The SEC also sued Ripple in December 2020 for allegedly illegally selling securities. The outcome of the case is expected to affect the entire cryptocurrency industry.
BNB is trading at $293.55 at the time of writing, according to CoinMarketCap data.
