A new cryptocurrency Voyager Digital plans to issue to pay bankrupt creditors is actually a security that should be regulated, a U.S. Securities and Exchange Commission attorney said in court on Friday.
The comments by William Uptegrove, who represents the U.S. Securities and Exchange Commission, reflect the views of the SEC staff, which could complicate the bankrupt cryptocurrency company’s proposal to repay creditors by issuing digital tokens as part of a plan that also includes the sale of Binance.US.
Uptegrove opposed the proposal and responded to a challenge to the SEC staff’s view by a judge overseeing Voyager’s bankruptcy case.
The committee itself has not taken a position, lawyers said. U.S. Bankruptcy Judge Michael Wiles holds a two-day hearing on the Binance.US sale and related payment plans.