The SEC has been curious to bring enforcement actions over popular ICOs for raising funds. The U.S Securities and Exchange Commission (SEC) has now launched its investigation on the world’s fifth-largest cryptocurrency BNB.
The BNB Token has now come under the scrutiny of the SEC, after five long years. The SEC has launched its investigation on Whether Binance has violated the securities laws with its 2017 BNB token sale. After Ripple’s XRP, BNB is the second-largest cryptocurrency that has come under the investigation of the SEC.
This investigation could affect the development of Binance which is already facing major regulatory hurdles across the globe, also in the U.S. whereas BNB is currently down trending by 7% at a price of $285 and a market cap of $46.7 billion.
Binance told Bloomberg in a statement: “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.” The crypto exchange Binance further added that it will continue to engage with authorities and “we will continue to meet all requirements by regulators.”
BNB is just not facing issues from the SEC’s investigation, it has also been troubled by the Commodity Futures Trading Commission (CFTC), the Internal Revenue Services (IRS), and the Justice Department as well.
The world’s largest crypto exchanges have recently allegedly aided a $2.35 billion money-laundering scheme. Sources have further revealed during the SEC investigation that it may not lead to the securities regulator suing the company, and it could be the fate of Ripple and years of court trials before coming to a conclusion.
One of the sources has further added that: ” Beyond BNB, the SEC is also probing trading abuses by Binance insiders and whether Finance. US, an American affiliate formed in 2019, is appropriately hived off from its global counterpart.”
SEC has taken its investigation to the market-making companies tied to Binance CEO Chengpeng Zhao. SEC also seems interested in Zhao’s ownership stakes of market makers on Binance U.S.