An official from the US Securities and Exchange Commission (SEC) has made a claim about the operations of Binance.US in the country.
The official has claimed that the US SEC does not have a positive view of the operations run by Binance.US in the country.
Binance.US is Offering Unregistered Securities
As communicated by the official, the Binance.US brand owns an exchange that is involved in offering securities to US locals that are unregistered.
The inside source has claimed that their authority is currently reviewing the activities of the Binance.US entity.
They have reasons to believe that the particular exchange is involved in offering securities to the US locals that are unregistered.
Apart from the above, the teams at the US SEC have strong concerns about the offering of the VGX tokens. The firm responsible for the issuance and distribution of the VGX tokens is Voyager Digital.
According to the regulator, the VGX token is not a registered token in the United States. This means that the token cannot be offered to the US locals without getting it registered.
Therefore, by continuing to offer the VGX tokens to the users, Voyager Digital has reportedly violated the securities laws put forth by the US government.
Statement by William Uptegrove
It was during one of the hearings for Voyager Digital’s bankruptcy that William Uptegrove, the Senior Trial Attorney of the SEC made a statement.
He said that the sale of the Voyager platform to the Binance.US platform is dependent on the call of the United States.
The regulator wants the bankruptcy court to make the call and decide what needs to be done with Voyager Digital.
The platform has filed for bankruptcy and it is in the hands of the court to decide what would be the fate of the exchange.
The US SEC is yet to provide any solid information pertaining to the nature of the token. However, the US SEC is confident that the particular court would be making the right choice in the matter.
On the other hand, the New York Bankruptcy Court’s Judge Michael Wiles made a statement about the matter.
He said that not much information and specifics have been shared by the US SEC about what they want to be done with Voyager Digital’s sale.
What does the Staff Believe?
According to the judge, although the US SEC has not made a clear claim against the VGX tokens, the staff seems to have passed its verdict.
Given the recent circumstances and facts that have been shared with the VGX tokens, the particular tokens must be considered securities.
If they are securities, then the Binance.US exchange is at fault for offering them to the US locals. Every security in the United States is subject to approval from the securities regulator prior to its offering.
This means that the exchange has been offering unregistered security to the US locals without having it legally authorized by the regulator.
The Decision is pending with the Agency Heads
It is worth clarifying that the heads of the agency are yet to share their views on the matter. These are the five commissioners that are making decisions on behalf of the organization.
Until they make a final decision, the views of the staff members do not hold any weight.
As of now, the US SEC is just reviewing the tokens and the exchange’s involvement in offering unregistered securities.
It may soon announce its action against the token and the exchange for violating the security offering laws of the country.
As part of the procedure, the issue is first highlighted by the staff members at the US SEC. They are the ones who highlight the particular crypto network or the crypto asset for its unruly and illegal activities.
Once launched, it is the commissioners at the regulatory authority who come to a verdict after casting a majority vote in favor of the action.