Binance Refutes BNB Security Claim – The world’s largest crypto exchange by trade volume, Binance has responded to the Securities and Exchange Commission’s claim that its native token BNB and stable coin BUSD are both securities.
In a recent development, the SEC filed charges against Binance and 13 other related entities for allegedly violating regulatory rules. In the lawsuit, the watchdogs labeled the BNB token, BUSD alongside other third-party crypto assets like ADA, SOL, and MATIC as securities.
Binance’s response to the claim
A Binance spokesperson in an email response to CryptoSlate, refuted the SEC’s claim. They said that the native token BNB is designed to create an internal economy. They also added that the coin does not represent any investment contract and cannot be labeled as securities.
“The coins do not represent an investment contract of any sort and as such are not securities,” they said.
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In addition, the crypto exchange giant also condemned the SEC’s classification of BUSD as security. According to the exchange company, BUSD is a stablecoin pegged to the value of the U.S. dollar, and the Commodities Futures Trading Commission (CFTC), another independent financial organization in the U.S., has referred to it as “a non-security commodity” through legal action.
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In the meantime, the SEC is known to have described several crypto projects as securities as this would not be the first time. Recall in April, the Algorand Foundation debunked the SEC’s classification of the native token ALGO as a security. In fact, Gary Gensler, SEC’s chairman has constantly asserted that all digital assets besides Bitcoin are classified as securities.
BNB market cap reaction
In the wake of the SEC’s lawsuit and the classification of BNB and BUSD as securities, the news impacted negatively on the asset’s total market cap. BNB’s market cap dropped by over $4 billion in the last 24 hours according to data from CoinMarketCap.
Source: Coinmarketcap
At press time, the market cap of BNB dropped as low as $43 billion from about $46.9 billion.
BNB price today
At the time of writing, live data from CoinMarketCap shows that the price of BNB today is $277.94. The tokens’ value is down 7.31% in the last 24 hours. Furthermore, BNB is one of the most popular cryptocurrencies in the market as it is ranked #4 o the CoinMarketCap chart.
Victor Swaezy
Victor Swaezy is a crypto-journalist with more than 3 years of experience in covering blockchain technology and digital currencies news. Known for his comprehensive reporting, Victor has contributed to leading industry publications such as Coinfomania and Crypto News Guru, providing market participants with the required knowledge to make informed decisions. When he is not working, he loves to watch movies and have a good time.