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The SEC's legal action against the BNB cryptocurrency has raised concerns about which altcoin would be next.

08-Jun-2022 By: Somesh Gaur
The SEC's legal acti

The SEC's legal action against the BNB cryptocurrency has raised concerns about which altcoin would be next.

The SEC has initiated an investigation into whether BNB is unregistered security, prompting speculation in the community about if other cryptocurrencies may be next.

The SEC has launched an inquiry into Binance to see if their BNB coin, which was sold in 2017, was a security offering.

The watchdog is looking into BNB's Initial Coin Offering (ICO) to see if it meets the definition of a security sale without registration. The scenario is now being reframed as a "ongoing conversation" with the SEC, according to a Binance statement, which also stated that the company is continuing to follow all legal standards. We won't say anything about our ongoing discussions with regulators, which involve education, help, and voluntary responses to information demands.

Cory Klippsten weighed in on the topic, questioning whether other centrally regulated and issued exchange tokens are in danger. Furthermore, not just exchange tokens, but all ICO altcoin offerings with a central controlling entity might be described in the same way.

What does the future hold for the altcoins market?

Based on the low upvotes on any comment, it's reasonable to believe that the community is split on what will happen to altcoins next, or even which token will be next.

Nothing to attacks on the SEC and its Chair Gary Gensler were among the comments. Surprisingly, one Redditor mentioned the ongoing SEC litigation against Ripple, claiming that the regulator's case is "now failing."

Given that XRP, in the opinion of the poster, is the most security-like altcoin, the SEC is unlikely to waste its "limited resources on tougher cases."

The billboard failed to indicate the possibility of the case's decision creating a legal precedent. Ripple's triumph would allay some of the altcoin community's fears. However, the case will most certainly be adjourned until 2023, resulting in a lengthy wait.


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