The Securities and Exchange Commission of the United States is probing into whether the BNB token from Binance is a security or not. The CEO of Binance, Changpeng Zhao, has stated that this is nothing more than the SEC asking questions.
CoinDesk sent a request to the SEC regarding the subpoena that was sent to Binance. This was regarding an investigations into the BNB token. However, the SEC wasn’t able to revert in time.
The SEC and Binance
In the response sent to CoinBase from an officer of the SEC FOIA, it was stated that a thorough search was conducted on the various record systems. However, the officer was unable to find any information regarding the request from CoinBase. What this means is that there isn’t a subpoena in place that is legally binding. This is why the exchange could not be compelled to produce documents or even provide personnel that could give answers.
In a report from June, Bloomberg said that investigators are looking into whether BNB’s initial coin offering was the same as selling a security. If it was, then this should have first first registered with the SEC. According to Zhao, Binance continues to be in touch with the authorities regarding the products that it has. He has said that the company has not been given a subpoena.
Zhao is someone who criticizes the media frequently. BNB is the exchange token from Binance. Holders of this token end up getting a discount when it comes to trading fees from Binance.