Examine the policy implications of the market meltdown of 2022, the advancement of CBDCs, and more.
Binance US operates an unregistered securities exchange in the United States, and employees think Voyager Digital’s sale of VGX tokens breached federal securities laws.
During a bankruptcy court to assess whether or not Voyager should be sold to Binance. In the United States, Senior Trial Attorney for the Securities and Exchange Commission William Uptegrove stated that he was responding to Judge Michael Wiles of the Southern District Bankruptcy Court in New York, who had initially said that the SEC had provided little guidance or specifics about its objection to the sale of Voyager.
From what the team knows, “the staff feels that the offering and sale of VGX tokens has the features of a securities transaction,” he said. Employees “had reason to suspect” that Binance.US is running an unlicensed securities exchange in the US.
The person stressed that the opinions of the SEC staff do not always represent those of the five commissioners who lead the agency. He would not reveal whether any enforcement proceedings were being considered by the SEC for his disclosure.
He emphasized that the panel had made “no decisions ” on the two problems. The statement says the commission’s opinion is different from the staff’s.
The SEC staff initiates most enforcement actions, but approval from most commissioners is required to take action.
A representative for Binance US stated, “It is sad that an SEC staff member would charge that Binance.US and platforms like ours are running an unregistered exchange without explaining the assets listed on our discussion that the SEC regards to be securities. To guarantee continued innovation in the United States, we and others in our business are committed to a constructive conversation with regulators and support of a comprehensive regulatory framework established and implemented by Congress.”
According to Uptegrove, the majority of cryptocurrency exchanges should be registered as national securities exchanges and subject to the SEC’s transparency and compliance framework, which is in line with previous statements made by SEC Chair Gary Gensler.
As part of its Chapter 11 bankruptcy reorganization plan, Voyager intends to sell its assets to Binance.US. A hearing to consider the idea has already gone on for three days, and it has the backing of 97% of Voyager’s creditors.
Also Read: Uniswap wants to create a mobile wallet, but Apple will not approve the launch
