A U.S. Securities and Exchange Officer declared that the staff of the agency believes Binance USA is in operation of an unregistered securities trading exchange. It is thought that the sale of VGX tokens was not in compliance with the Federal securities laws of the U.S. Voyager Digital.
At the commencement of a bankruptcy hearing which is being held to decide if Voyager should be sold to Binance USA, Senior Trial Attorney William Uptegrove from the SEC talked to Judge Michael Wiles of the Southern District Bankruptcy Court in New York.He claimed that there had been no guidance from the SEC regarding its objections to the hearing.
“The staff considers – based exclusively on the facts and circumstances currently known to the staff – that the sale and offering of VGX tokens has the attributes of a securities transaction,” He mentioned. “The staff also considers that Binance US is operating an unregistered securities exchange in the United States.
A senior official from the U.S. Securities and Exchange Commission (SEC) has declared that Binance US is operating as an unregistered securities exchange. He pointed out that these statements were not necessarily representative of the opinion of the five commissioners at the top of the agency.
The SEC staff typically initiates enforcement action, however it requires the approval of the majority of the commissioners before any action can be taken. Binance US have yet to respond to requests for comment.
The commentaries of the SEC Chair Gary Gensler echo the sentiments here, as he has previously made it clear that a majority of crypto trading platforms should register as national securities exchanges in order to adhere to the agency’s disclosure and compliance system.
This statement was updated on March 3, 2023, 23:25 UTC with additional information.