• The U.S. SEC has filed a complaint against Binance for mishandling customer funds and wash trading, as well as labeling several popular crypto assets as unregistered securities.
• These assets, including BNB, BUSD, SOL, ADA, MATIC, ATOM, SAND, MANA, AXS and COTI face delisting risk from U.S.-based exchanges in order to comply with the SEC’s regulations.
• This is not the first time that the SEC has gone after crypto businesses; similar enforcement actions were taken against Gemini, Genesis Kraken Beaxy and Bittrex earlier this year.
SEC vs. Binance
The U.S Securities and Exchange Commission (SEC) recently launched an enforcement action against Binance for mishandling customer funds and wash trading. As part of its complaint filed on June 5th 2023, the agency also labeled several popular crypto assets as unregistered securities which puts pressure on US-based exchanges to delist them or potentially face enforcement action themselves.
Popular Tokens at Risk
The list of tokens labeled by the SEC as unregistered securities include: BNB (BNB), Binance USD (BUSD), Solana (SOL), Cardano (ADA), Polygon (MATIC), Cosmos (ATOM), The Sandbox (SAND), Decentraland (MANA), Axie Infinity (AXS) and COTI (COTI). These are all leading cryptocurrencies by market capitalization and widely supported on several US-based crypto exchanges such as Coinbase and Kraken – making it difficult for these exchanges to decide whether to prioritize compliance over their trading volumes or vice versa in light of this news from the SEC’s case against binance .
Previous Enforcement Actions
This is not the first time that U.S financial regulators have increased their efforts in enforcing crypto related activities; similar enforcements have been taken against Gemini, Genesis Kraken Beaxy and Bitrex earlier this year when they prevented XRP from being traded due to its classification as an unregistered security by the SEC – further increasing pressure on other exchanges who offer these tokens listed above in order for them to remain compliant with regulatory restrictions .
Any decision made regarding delisting these tokens could have major consequences for both investors who hold these tokens as well as those involved in trading them since they could potentially see their investment values plunge if not able to trade them anymore on these particular platforms . This serves us a reminder that strict regulatory oversight is here to stay within cryptocurrency space moving forward .
It remains uncertain what will happen next with regards to delisting but given how serious the allegations leveled at binance are , it is likely that more clear guidance will be issued from regulators in order for US based exchanges to make sure they comply with laws so as not invite any unwanted attention from authorities .