At a bankruptcy hearing discussing the sale of Voyager Digital to Binance.US, a senior trial attorney from the SEC, William Uptegrove, revealed that agency staff believe Binance.US is running an unregistered securities exchange in the US, and that the sale of VGX tokens by Voyager Digital breached federal securities laws. Uptegrove made this statement in response to the judge's observation that the SEC had given limited information about its opposition to the Voyager sale.
The SEC senior trial attorney, William Uptegrove, stated that based on the available facts and circumstances, the agency staff believes that the sale and offering of VGX tokens possess the characteristics of a securities transaction. He also mentioned that the SEC staff's views do not necessarily mirror those of the five commissioners in charge of the agency. Uptegrove did not indicate whether the SEC had any enforcement actions in progress related to his statement. He clarified that the staff beliefs did not represent the commission's views as the commission had not yet made any decisions on the issues raised.
Usually, the SEC staff initiates enforcement action, but it requires the majority of the commissioners' votes to proceed. Binance.US spokesperson expressed disappointment with the SEC staff's accusations without specifying the assets that the SEC considers securities. The spokesperson stated that they and others in the industry are committed to engaging in constructive dialogue with regulators and supporting a comprehensive regulatory framework drafted and passed by Congress to ensure innovation continues in the United States.
William Uptegrove's comments reflect SEC Chair Gary Gensler's views that most crypto trading platforms should register as national securities exchanges, subject to the agency's compliance regime. Voyager intends to sell its assets to Binance.US as part of its Chapter 11 bankruptcy restructuring plan. The majority of Voyager's creditors, around 97%, have supported the proposal, and a hearing to discuss the plan is in its third day.