The SEC has opened an investigation into Binance to determine whether its BNB token was a security offering when sold in 2017, Bloomberg News reported.
Specifically, the watchdog is examining if BNB’s Initial Coin Offering (ICO) met the definition of a security sale without registration.
A Binance statement on the matter reframed the situation as an “ongoing conversation” with the SEC, adding that the firm continues to meet all regulatory requirements.
“It would not be appropriate for us to comment on our ongoing conversations with regulators, which include education, assistance, and voluntary responses to information requests.”
Weighing in on matters, Swan Bitcoin founder Cory Klippsten questioned whether “other centrally controlled and issued exchange tokens” are under threat. Moreover, the same could be said about all ICO altcoin offerings with a central controlling entity, not just exchange tokens.
Will the SEC investigation of @binance $BNB affect other centrally controlled and issued exchange tokens that were clearly marketed and sold as profit-making opportunities? https://t.co/FBbq1JJhNS
— Cory Klippsten (@coryklippsten) June 7, 2022
Social media chatter is awash with commentary on the situation and how altcoins, in general, may be affected going forward.
What now for the altcoin market?
A Reddit post discussing the securities status of altcoins called for community feedback on the situation.
Based on the relatively low upvotes on any comment, it’s logical to assume the community is somewhat divided on what will happen next for altcoins, or indeed which token is next.
Comments ranged from nothing to attacks against the SEC and its Chair Gary Gensler. Interestingly, one Redditor referenced the ongoing SEC lawsuit against Ripple and said the regulator’s case against Ripple is “currently failing.”
Given that XRP is “the most security-like altcoin,” in the opinion of…
