By Davit Kirakosyan
According to a report from Bloomberg News, the U.S. Securities and Exchange Commission is examining if the 2017 initial coin offering by Binance Holdings Ltd. for its BNB token amounted to the sale of a security that should have been registered with the agency.
Scrutiny of BNB's origins, which is now the world’s fifth-biggest with a current value of around $300 and a market capitalization of about $48.5 billion, can be a troubling development for the company as it faces multiple investigations in Washington.
According to the people who were granted anonymity to discuss the confidential probe, it is likely months away from any conclusion. In case the examination results in a finding that the BNB is a security, Binance may be in a similar position as Ripple Labs Inc., which is locked in a bitter court battle with the U.S. Securities and Exchange Commission regarding the allegedly breaking of the rules by the firm and two of its executives in selling a crypto token known as XRP in December 2020.