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SEC Hpropose To The Merger Between Voyager And Binance

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SEC objection to Voyager-Binance.US deal questioned by US judge

The US Securities and Exchange Commission (SEC) has been called into question by a US judge. Regarding its decision to block a deal between cryptocurrency firms Voyager and Binance US.

The Deal in Question

Voyager Digital is a US-based crypto asset platform that allows users to trade numerous different cryptocurrencies. In November, Voyager announced that it had entered into an agreement with, the US arm of the Binance crypto exchange. The two companies planned a joint venture which would have allowed Voyager customers. To access Binance’s platform directly, as well as receive Binance’s fiat currencies and other services.

SEC Objection and the Response from Voyager and Binance US

However, on December 1st the SEC issued an emergency order blocking the deal and freezing the assets of both companies. The order accuses the two companies of failing to register their securities offerings with the SEC, which is a violation of federal securities laws.

Voyager and Binance US responded to the order. By filing a joint motion asking the court to vacate the temporary restraining order and allowing the deal to proceed. The two companies argued that their joint venture had no real financial impact and thus should not be considered an offering of securities.

The Court’s Decision

US District Court judge, Jed Rakoff, questioned the SEC’s decision to block the joint venture. He asked whether the joint venture constituted a “transaction with a practical economic effect” and argued that the court should not intervene unless there is a clear violation of the law.


It is yet to be seen what the outcome of this case will be, however, it is clear that the SEC may face an uphill battle in trying to block the Voyager-Binance US deal. Judge Rakoff’s comments suggest that he does not support the SEC’s emergency order and may be unwilling to enforce it. Time will tell whether the two companies will be allowed to proceed with their joint venture.
detail photograph SEC

What evidence did the SEC present to demonstrate potential harm to investors and competition under the proposed merger?

On Wednesday, a US judge questioned the Securities and Exchange Commission’s (SEC) recent objection to a proposed merger between Voyager Digital Ltd and Binance.US, alleging that the commission had failed to demonstrate that the transaction could harm investors and competition.

The SEC had earlier asked the judge for a preliminary injunction to suspend the proposed merger between Voyager Digital, a Canadian-based cryptocurrency investment platform, and Binance.US, an American arm of leading cryptocurrency exchange Binance. The commission argued the merger would hurt investors’ interests and create an effective monopoly in the space.

Judge Denise Cote of the U.S. District Court for the Southern District of New York, however, raised doubts about the SEC’s claims. She said that the commission had failed to demonstrate how the merger would impact investors’ interests or competition. “Where does the proof come from that this will be a monopoly?”, she asked the SEC.

Voyager and Binance have repeatedly stated the commission’s objection to the merger is “devoid of any substantive legal arguments or sound policy considerations.” They argued that the merger is a pure business decision, and wholly unrelated to the securities market.

The SEC response is awaited on Thursday. Given the judge’s skepticism, it is uncertain whether the commission will be able to demonstrate the merger may be a harm to investors and competition.

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