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SEC Lawyer Challenges Voyager Digital’s Cryptocurrency Plans for Repaying Creditors

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It is reported that a lawyer from the Securities and Exchange Commission of the United States said in court on Friday that the new cryptocurrency that Voyager …

SEC Lawyer Challenges Voyager Digitals Cryptocurrency Plans for Repaying Creditors

It is reported that a lawyer from the Securities and Exchange Commission of the United States said in court on Friday that the new cryptocurrency that Voyager Digital plans to issue to pay the bankrupt creditors is actually a securities that should be regulated. William Uptegrove’s comments on behalf of the United States Securities and Exchange Commission reflect the views of SEC staff, which may complicate the proposal of bankrupt cryptocurrency companies to repay creditors by issuing digital tokens. Part of the plan also includes the sale of Binance.US. Uptegrove opposed the proposal and responded to the challenge raised by the judge supervising the Voyager bankruptcy case against the views of the SEC staff. The lawyer said that the committee itself had not made a clear position.

SEC lawyer: Voyager’s bankruptcy token should be regulated

Interpretation of the news:


A recent report reveals that the United States Securities and Exchange Commission (SEC) has expressed concerns over a cryptocurrency that Voyager Digital intends to issue to repay the bankrupt creditors. In court on Friday, William Uptegrove, a lawyer representing the SEC, stated that the cryptocurrency is a security and should be regulated. This statement reflects the views of the SEC staff and may pose challenges to the cryptocurrency company’s proposal to repay its creditors by issuing digital tokens.

The plan to repay the creditors also includes the sale of Binance.US. However, Uptegrove opposed the proposal and challenged the judge’s views on the issue. Uptegrove further added that the committee had not stated its position clearly on the issue.

The SEC has been scrutinizing cryptocurrencies to ensure their adherence to securities laws. The regulator has been investigating companies that issue digital tokens to cover funding for various ventures. SEC believes that digital tokens are investments that fall under security laws’ purview, and thus companies should comply with the registration and disclosure prerequisites.

Voyager Digital’s plan to issue cryptocurrency to repay the creditors may not be a straightforward process, especially given the SEC’s position on such products. Any firm that issues digital tokens should be prepared to comply with the regulations and rules set out by the SEC to avoid running afoul of the law.

The cryptocurrency industry has been experiencing a surge in popularity, leading regulatory bodies to start scrutinizing it. Additionally, the industry’s decentralized and borderless nature may pose various challenges for regulators worldwide. Thus, companies issuing digital tokens must adhere to regulations at all times to avoid repercussions from the authorities.

In conclusion, the SEC’s concerns over Voyager Digital’s planned cryptocurrency issuance to repay creditors may not be a unique case. Regulators worldwide are keen on ensuring that cryptocurrency companies comply with securities and financial laws accordingly. Due to this, companies planning to issue digital tokens should consult with experts to ensure they comply with these regulations fully.

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