• The U.S. Securities and Exchange Commission filed a limited objection and reservation of rights against the planned Binance buyout of Voyager Digital in a deal valued at around $1 billion.
• The SEC argued that the agreement lacks details on Binance US’s ability to close the transaction.
• The SEC is increasing its efforts to regulate the crypto industry.
The U.S. Securities and Exchange Commission (SEC) has stepped up its efforts to regulate the crypto industry, filing a limited objection and reservation of rights against the planned Binance buyout of Voyager Digital. The deal is valued at around $1 billion.
The SEC filed the objection on Jan. 4 and argued that the asset purchase agreement fails to include sufficient detail about Binance’s ability to close the transaction. The agency noted that the agreement does not include information about Binance US’s ability to „consummate a transaction of this magnitude, which the Debtors value at $1.022 billion, including the nature of Binance’s capitalization and financial resources.”
The SEC further stated that the agreement does not provide enough detail regarding the proposed transaction, which would result in a „change of control“ of Voyager Digital. The agency argued that the agreement could also be deemed an unregistered securities offering.
The agency also noted that the agreement does not address the risks associated with the use of digital assets and the “inherent risks” associated with the transaction. The SEC also highlighted the potential risks associated with the purchase of Voyager Digital’s assets, including the potential for material market losses.
The SEC’s filing is the latest move in its attempt to regulate the crypto industry. The agency has been ramping up its efforts to protect investors from potential fraud and manipulation. In December, the SEC filed a lawsuit against Ripple Labs for allegedly violating securities laws by selling XRP tokens.
The SEC is also currently investigating a number of other crypto-related companies, including Coinbase and Kraken. The agency is reportedly looking into potential violations of securities laws related to the companies’ operations.
The SEC’s filing against Binance’s U.S. division is a further sign of the agency’s increasing efforts to regulate the crypto industry. The regulator is likely to continue to ramp up its efforts to protect investors and ensure that crypto transactions are conducted in a manner that is compliant with securities laws.