Binance Coin (BNB token) faces turmoil as SEC investigates it. The goal of this investigation is to uncover whether BNB was offered as unregistered security during its ICO(Initial Coin Offering) in 2017. This suggests that the SEC might ultimately file a lawsuit against Binance if they find something substantial related to this investigation. Even XRP is facing the same lawsuit, and the argument of whether it is a security or not has been continuing for a while.
Binance is having a tough time in the US
The latest lawsuit creates a lot of danger for Binance as it can harm the future of the Binance coin terribly. We have seen XRP go down that route, and maybe it will recover once the lawsuit is over, but still, things will be difficult. Binance is also facing many other investigations at the same time. For example, the Department of Justice, IRS, and CFTC are investigating them for insider trading, market manipulations, and criminal violations. The SEC is also trying to find a like between its founder and two trading firms.
If any of these investigations fall in favor of the authorities, Binance might have to pay hefty fines and stop its operations in the US. However, it seems that Binance is at least confident that it has been following the guidelines and regulations in the country. A spokesperson from the exchange said, “we have been working very diligently to educate and assist law enforcement and regulators in the US and internationally while also adhering to new guidelines. We will continue to meet all requirements set by regulators.” However, the SEC also aims to find if Binance US, which was formed after Binance’s initial ban in the United States, is separate from China’s main platform.
BNB’s future might be dark
Till now, it is clear that whenever the SEC has decided to go after a token, it has faced a tough time. Even though I don’t want to say this, the authorities might find a reason to lodge against BNB one way or another. And then, it will be a similar case as XRP, which is now at just 34 cents in price. BNB is now the 5th largest cryptocurrency after BTC, ETH, and two stablecoins (USDT, USDC). However, if SEC files a lawsuit, it will lose that position pretty quickly.
What are your thoughts as SEC investigates the BNB token? And do you think there will soon be a lawsuit? Let us know in the comments below. Also, if you found our content informative do like and share it with your friends.
Also Read: Bermuda introduces crypto-friendly laws to attract more businesses.
