SEC lawyer: Voyager\’s bankruptcy token should be regulated

It is reported that a lawyer from the Securities and Exchange Commission of the United States said in court on Friday that the new cryptocurrency that Voyager Digital plans to issue to pay the bankrupt creditors is actually a securities that should be regulated. William Uptegrove’s comments on behalf of the United States Securities and Exchange Commission reflect the views of SEC staff, which may complicate the proposal of bankrupt cryptocurrency companies to repay creditors by issuing digital tokens. Part of the plan also includes the sale of Binance.US. Uptegrove opposed the proposal and responded to the challenge raised by the judge supervising the Voyager bankruptcy case against the views of the SEC staff. The lawyer said that the committee itself had not made a clear position.

Interpretation of this information:

The message reports on a legal issue related to cryptocurrency, specifically the new cryptocurrency that Voyager Digital plans to issue for paying the bankrupt creditors. According to a lawyer from the United States Securities and Exchange Commission (SEC), the new cryptocurrency is actually a security that should be regulated. This interpretation could create complications for bankrupt cryptocurrency companies that plan to repay creditors by issuing digital tokens.

The statement made by William Uptegrove, representing the SEC staff, indicates that the regulatory body views the new cryptocurrency as a security, similar to stocks and bonds, which are subject to SEC regulations. This view challenges the position of Voyager Digital, who may have hoped to issue the digital tokens without regulatory scrutiny. However, the SEC’s interpretation is not unexpected, as the agency has been trying to assert its authority over the cryptocurrency market in recent years.

The legal issue also relates to the proposed sale of Binance.US, which is part of the plan to repay Voyager’s creditors. Uptegrove opposed the plan, and this could lead to a challenge against the views of the SEC staff. It is unclear at this point what the committee’s position is on the matter. However, if the SEC’s stance is upheld, it would have far-reaching implications for other cryptocurrency companies that plan to issue digital tokens.

The SEC’s view of cryptocurrency as a security is not new, and the agency has previously taken action against companies that have issued ICOs (initial coin offerings) without complying with securities laws. The agency has also been active in monitoring and enforcing regulations related to cryptocurrency trading and exchanges. The SEC’s involvement in this case highlights the need for clear regulations in the cryptocurrency market and the challenges involved in reconciling the regulatory framework with the rapidly evolving technology.

In conclusion, the message reports on an important legal issue related to the cryptocurrency market. The SEC’s view that the new cryptocurrency issued by Voyager Digital is a security that should be regulated could have significant implications for the industry. It highlights the need for clear regulations and the challenges involved in reconciling the regulatory framework with the emerging technology.