• The U.S. Security and Exchange Commission (SEC) is opposing a restructuring deal proposed by Binance and Voyager Digital.
• At a court hearing in New York, Judge Michael Wiles expressed his disapproval of the SEC’s opposition to the deal.
• The SEC has urged for more clarity on their position regarding the security violations, with Gary Gensler claiming that every crypto asset aside from Bitcoin is a security.
The Binance-Voyager restructuring plan involves the sale of just over $1 billion worth of its assets to Binance.US. However, the U.S. Security and Exchange Commission (SEC) has opposed the deal claiming that it violates securities laws.
At a court hearing in New York on March 2nd, U.S. Bankruptcy Judge Michael Wiles was critical of the SEC’s objections to the deal saying “Deliberative is one thing, but what have you done? If there are reasons to be concerned here, I need to hear specifics.“
When questioned about the reasoning behind their opposition, SEC attorney William Uptegrove failed to provide a definite answer stating, “we can’t take a position at this point,“ before adding, „the SEC is a deliberative body, and its process is a nonpublic one by federal law.“
The new chairman of SEC Gary Gensler has ramped up his war on crypto this year and appears to be „carpet bombing“ the entire industry by claiming that every crypto asset aside from Bitcoin is a security – including Voyager’s VGX sale which he believes violated securities law without providing specifics on why he came to this conclusion or what those violations were specifically.
If Judge Wiles approves of Voyager’s Binance deal then it will be allowed to proceed despite not having any clear answers from Gary Gensler or any other members of his team as to why they believe it would violate securities law in any way shape or form.