As it is known, the SEC announced that another stock market token FTT is a security. A similar mechanism to increase the value of FTT by being bought and burned by the stock market was launched by Binance in 2021 with a mechanism called BNB Burn for BNB.
Cory Klippsten, CEO of Bitcoin company Swan, has claimed that Binance.US may delist BNB due to the SEC’s designation of FTT as a security.
“The SEC’s Credibility Is Undermined If BNB Also Doesn’t Qualify as a Securities”
The same view was shared by Dave Warburton, who said that BNB and all other exchange tokens should be treated the same. According to Warburton, the SEC’s credibility will be “completely undermined” if it doesn’t label the coin as a security.
I don’t see any way $BNB remains listed on Binance US for long, after the SEC’s designation of FTT as a security.
What, if any, are the implications?
— Cory Swan.com (@coryklippsten) December 24, 2022
Most exchanges have avoided listing digital assets that the SEC might consider security. For example, when the SEC filed a lawsuit against Ripple over XRP, Coinbase immediately delisted the coin. The only major US exchange that supports BNB is Binance.US, a subsidiary of the parent company.
After declaring FTT a security, $BNB and any exchange token should be treated the same. Otherwise the SEC’s credibility is totally undermined.
The LBRY recent court decision is also a big clue that 2023 signals pain for unregistered securities.
Better late than never.
— Dale Warburton (@Dale21M) December 24, 2022
However, several members of the community disputed the claim that BNB is similar to FTT. According to a December 23 tweet by B, a key supporter of Floki Inu, FTT is only the native token of the bankrupt crypto exchange FTX, while BNB is the native asset of not only Binance but also BNB Smart Chain.
Binance CEO Responds to Comparing FTT and BNB
B added that the value of BNB is due to the fact that it is the most used exchange and the most used blockchain token in the world.
Meanwhile, Binance CEO Changpeng Zhao said that many people “think that all ‘exchange tokens’ are the same.” CZ added:
“BNB has a use case on the Binance exchange. BNB is a native coin on two blockchains, BNB is DEX (beacon chain) and more.”
*Not investment advice.
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