The SEC’s objection to the BinanceUS-Voyager deal reached another level of discussion, where they are targeting BinanceUS as an unregistered securities provider platform.
BinanceUS is an independent subsidiary of the Binance crypto exchange. BinanceUS provides services in the US only, with particular numbers of crypto assets which are allowed under the jurisdiction of the US. Since Dec 2022, BinanceUS has been in talks with the bankrupt crypto lender platform Voyager Digital, so that BinanceUS can purchase Voyager assets & further restructure the platform. 97% of Voyager creditors are in favour of the BinanceUS-Voyager deal. Before BinanceUS, FTX exchange was trying to acquire Voyager but failed because FTX exchange itself went bankrupt in Nov 2022.
Speaking at a bankruptcy hearing over the BinanceUS-Voyager deal, SEC Senior Trial Attorney William Uptegrove said that the agency provided little guidance in the Voyager assets sale, as a part of objection to the BinanceUS-Voyager deal.
William Uptegrove said the “SEC staff believes that the offering and sale of VGX tokens have the attributes of a securities transaction & also believes that Binance.US is operating an unregistered securities exchange in the United States.”
It is worth noting that Uptegrove’s comments are much similar to a statement passed by SEC Chairman Gary Gensler in 2022. At that time, Gensler said that he believed that the majority of the exchanges were providing securities offerings & should be registered as national securities exchanges.
BinanceUS spokesperson reportedly responded to these SEC staff statements and said that these things are totally regrettable because they are claiming that the exchange provides unregistered securities offerings but they are failing to provide any kind of specific details about that particular securities asset on the platform.