The US Securities and Exchange Commission is investigating whether Binance’s 2017 initial coin offering breached its policies.
The commission seeks to determine whether the largest exchange by volume should have registered its BNB tokens as security before selling to the public in the ICO.
The news comes amid various probes in the US against Binance. The SEC has reportedly tightened the policies around ICOs even as Binance commits to meet all the commission’s demands in the probe.
The determination of the case is centered on a 1946 US Supreme Court decision. The policy defines a digital currency under SEC’s remit as asset users buy to fund a company or make profits.
BNB token launched in 2017, where Binance detailed plans to circulate 200 million tokens, with half of it sold through an ICO and executed through multiple platforms globally.
Source: Bloomberg
