A US Securities and Exchange Commission (SEC) official has targeted the Bitcoin and altcoin platform. He stated that he thinks Binance.US, which has come to the fore with its efforts to buy Voyager, which is already bankrupt, violates the securities laws. Here are the details…
Bitcoin and altcoin exchange violates securities laws
A U.S. Securities and Exchange official said that the agency’s staff believe Binance.US operates an unregistered securities exchange in the United States, and that the staff believe the VGX token sale by Voyager Digital violates federal securities laws. Speaking at a bankruptcy hearing to decide whether Voyager should be sold to Binance.US, SEC Senior Litigation Attorney William Uptegrove made statements. He said he had responded to Judge Michael Wiles at the Southern District Bankruptcy Court in New York at the start of the hearing that he had provided little guidance or detail about the SEC’s appeal against the Voyager sale. Uptegrove used the following statements:
Staff believes – based on facts and conditions only currently known to staff – that the offering and sale of VGX tokens has the qualities of a security transaction. Staff also believe that Binance.US operates an unregistered securities exchange in the United States.
The official noted that the views of SEC staff do not necessarily reflect the views of the five commissioners at the head of the agency. He did not say whether the SEC had any sanctions on the business that was linked to his statement. The Commission did not make any determinations on either of these issues. “Staff beliefs do not represent the opinion of the commission,” he said.
Binance.US spokesperson made a statement
Typically, an enforcement action by the SEC is initiated by staff, but a majority of the commissioners must vote in favor to proceed. A Binance.US spokesperson said, “It is regrettable that an SEC employee has made claims that platforms like Binance.US and ours operate an unregistered exchange without specifying the assets listed on our exchange that the SEC considers securities.” said. He also used the following expressions:
Together with others in our industry, we are committed to constructive dialogue with regulators and to support a comprehensive regulatory framework prepared and adopted by the US Congress to ensure continued innovation in the US.
Uptegrove’s comments seem to echo the thoughts of SEC Chairman Gary Gensler, who has said in the past that he believed the majority of crypto trading platforms should be registered as national stock exchanges. Voyager plans to sell its assets to Binance.US as part of its Chapter 11 bankruptcy restructuring plan. cryptocoin.com As we have also reported, Binance.US is the US arm of Binance. The vast majority (97 percent) of Voyager’s creditors supported the proposal and is entering a hearing to discuss the plan.
