SEC Is Investigating Into Binance’s BNB Token
According to reports, the Securities and Exchange Commission (SEC) is looking into whether Binance’s BNB coin constituted a security when it was sold in 2017.
The SEC has opened an investigation into the BNB token. The US Securities and Exchange Commission is investigating whether the sale of the exchange’s BNB token during a 2017 initial coin offering constituted an unregistered sale of securities.
Gary Gensler, the chairman of the Securities and Exchange Commission, has expressed concern that platforms may be hosting tokens that could be classified as securities, but his comments have focused more on holding exchanges accountable for hosting unregistered securities than going after projects themselves, as previous SEC regimes did during the ICO boom.
A number of US regulators have scrutinized Binance
The SEC is also apparently looking into Binance.US, the exchange’s US subsidiary, to see if it is properly distinguished from its worldwide version. The Internal Revenue Service and the Department of Justice are also looking into Binance’s operations, and the Commodity Futures Trading Commission (CFTC) has reportedly initiated an investigation into whether Binance enabled US residents to use its platform.
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