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- Binance users are still in a state of panic after a U.S. SEC official claimed that Binance US is an unregistered securities exchange.
- Binance could be slammed with a lawsuit by the SEC in the future, attorney warns.
Rumors are speculating that leading cryptocurrency exchange Binance is on the SEC’s watchlist. The rumors emerged after a U.S. SEC official revealed that an SEC staff member claimed that Binance US was running an unregistered securities exchange. The staff maintains that Voyager Digital’s sale of VGX tokens infringed on federal securities laws.
The comments speculate that Binance US and Binance are inappropriately affiliated in some ways. According to internal messages reviewed by the Wall Street Journal, both exchanges were “deeply intertwined” in terms of finances, staff, and technology.
The messages further revealed that Gary Gensler, the current Chairman of the U.S. Securities and Exchange Commission was allegedly asked to take up an advisory position at the exchange in 2018 and 2019.
Gensler reportedly rejected the offer but proceeded to share some licensing strategies that could come in handy for the exchange.
What does the future hold for Binance and Binance US?
Binance was established back in 2017. With millions of customers on the platform, Binance has grown to be one of the most valued cryptocurrency exchanges on the market. Binance is mostly used by customers looking to spend less, as the fees are cheaper than other exchanges. Binance also offers a large number of assets for trading. On the other hand, Binance US was launched in 2019, after regulatory policies got stricter.
Binance US was created by Binance and its partner BAM Trading Services. It is an exchange created for U.S. residents looking to partake in Crypto. Users of the platform can make U.S. dollar deposits and withdrawals through bank transfers or debit cards.
The future of both Binance and Binance US remains unknown. However, the market is speculating that the exchange could get into serious trouble with the SEC in the coming months.
John Deaton, a crypto lawyer and Managing Partner of the Deaton Law Firm is now predicting that Binance is the SEC’s next target. “The lawsuit is coming” he said, in response to an SEC staff branding Binance as an unregistered securities exchange.
The lawsuit is coming. https://t.co/HuT1dPN5yl
— John E Deaton (@JohnEDeaton1) March 4, 2023
However, in another tweet, Deaton brought clarification to the matter. He insists that the comments from an SEC staff should not carry a lot of weight.
Everyone needs to remember that whatever the current “SEC staff” concludes is NOT the law – it’s an opinion often based on political agendas. Those conclusions change when the “SEC staff” changes (eg #ETH). The Court decides whether an asset was or is being sold as a security.
