Binance has denied the SEC's allegations
The U.S. Securities and Exchange Commission (SEC) has classified twelve cryptocurrencies as securities in a legal complaint against Binance, the world's largest crypto exchange, for allegedly selling unregistered securities. The SEC claims that Binance violated the Securities Act of 1933 by offering digital assets that are considered investment contracts under the Howey test. The Howey test is a legal framework that determines whether an asset is a security based on whether it involves an investment of money in a common enterprise with an expectation of profit from the efforts of others.
According to the SEC, some of the cryptocurrencies that fall under this definition are Cardano, Cosmos, Filecoin, Polygon, and Solana. These tokens are among the most popular and widely traded in the crypto market. The SEC's action could have significant implications for the crypto industry, as it could subject these tokens to stricter regulations and disclosure requirements. It could also affect the investors who hold these tokens, as they may face legal risks or losses if the tokens are delisted from exchanges or deemed illegal.
Binance has denied the SEC's allegations and said that it complies with all applicable laws and regulations in the jurisdictions where it operates. The crypto exchange also said that it does not offer any securities to U.S. residents or citizens, and that it uses advanced technology to prevent such transactions. Binance has vowed to fight the SEC's lawsuit and defend its rights and interests. In the crypto exchange’s view, they’ve simply become an easy target for regulators due to their size at a time when different agencies are vying for control over crypto regulation. Additionally, Binance made it clear that customer funds are and always have been safe and secure on their platforms.