US SEC Opposes Binance-Voyager's Billion-Dollar Lucrative Deal

US SEC Opposes Binance-Voyager’s Billion-Dollar Lucrative Deal

The US Securities and Exchange Commission (SEC) has been taking stringent measures in response to the increasing tensions around cryptocurrency-related frauds and vulnerabilities.

The commission has once again stepped up its involvement in the digital asset industry with strong opposition against Binance US and defunct crypto lender Voyager’s proposed $1 billion merger. Despite giving initial court approval back in January 2023, it appears that regulators are not yet ready to accept such large-scale collaborations within the space.

It remains to be seen whether or not this attempted union will ever reach fruition but regardless, its impact on the markets will be felt for many months to come.

What is the Reason behind this Opposition?

SEC claimed that the proposal could not be recognized under the bankruptcy code. The recent scrutiny has sent shockwaves throughout the crypto space, adding to an already tumultuous situation. The commission’s actions are seen by many as a clear sign that it is not willing to give any ground when it comes to enforcing regulations.

Experts point out that this move follows in the wake of hefty penalties levied against Kraken for its staking service and a notice served to Paxos to take action, clearly demonstrating the agency’s commitment to upholding industry standards.

Such stringent enforcement certainly puts pressure on those operating within the sector to adhere to necessary protocols. Binance US has also come under the scanner of the SEC for its lack of transparency surrounding customer asset security, reflecting a stark deficiency in terms of detailed disclosure and internal practices.

The company also failed to ensure whether third parties will have access to the user wallet key as well as whether customer assets are safeguarded from transfer off the platform.