In an unexpected turn of events this week, the U.S. Securities and Exchange Commission (SEC) has delivered a shockwave through the digital currency universe.
According to reports, the regulatory body has swelled the list of cryptocurrencies it categorizes as unregistered securities, adding approximately $115 billion worth of tokens. The latest twist in cryptocurrency regulation has come about due to a lawsuit filed by the SEC against the crypto exchange Binance.
In its most recent move, the SEC has ruffled feathers within the crypto community by declaring that several tokens traded on Binance, including Binance’s own BNB token, the stablecoin BUSD, and other cryptocurrencies such as Solana, Cardano’s (ADA), and Polygon’s (MATIC), are in its eyes, securities. As such, the SEC asserts they should be subject to registration and regulation.
Including these new tokens under the regulatory spotlight increases the total value of cryptocurrencies that the SEC views as securities to an astounding $115 billion, casting a considerable shadow over the booming crypto market.
This Monday, the SEC launched a volley of 13 charges against Binance, a crypto exchange giant. The SEC accused Binance of engaging in unregistered and unlawful offers and sales of its BNB and BUSD tokens. Moreover, they claimed that Binance.com was operating unlawfully, as it was not registered as an exchange or a broker-dealer clearing agency.
In the wake of the SEC’s allegations, Binance has rallied its defenses. A spokesperson for the company countered the claims on Tuesday, arguing that their BNB token is not a security but a native token. They further elaborated, “BNB is designed to create an internal economy; its value derives from its participants.”
As this chapter of the unfolding saga between the crypto industry and regulatory bodies unfurls, it’s clear that the ramifications could be far-reaching for Binance and the broader crypto ecosystem. The SEC’s expanding list of unregistered securities may signal tighter reins on the digital frontier, and all eyes will be on how the crypto industry responds to this challenge.
