Sandbox COO Says the Company Disagrees With SEC for Labeling SAND a Security
On Wednesday, The Sandbox Chief Operating Officer, Sebastien Borget, responded to the lawsuits brought against two major crypto exchanges earlier this week by the United States Securities and Exchange Commission (SEC).
This time around, the agency targeted Coinbase and Binance. In its lawsuits, the SEC mentioned several tokens offered by the trading platforms which the regulator deems as securities. These tokens include SAND, AXS, MANA, Cardano, Solana, and Polygon.
Speaking at the Non Fungible Conference in Lisbon, Borget said The Sandbox was in disagreement with the SEC’s characterization of SAND as security. The COO added that, although the firm’s token was mentioned in the lawsuits, The Sandbox won’t be involved in any of them and will continue with business as usual.
SEC’s Lawsuits Against Binance and Coinbase
The SEC leveled charges against Binance on Monday, accusing the crypto exchange of selling unlicensed securities. In addition, the commission also claimed that Binance did not restrict Americans from accessing its international trading platform and operated as an unregistered clearing agency, broker, and exchange.
On Tuesday, the SEC targeted Coinbase, alleging that the exchange also did not register as a broker or clear agency. On top of that, the regulator accused Coinbase of offering unlicensed staking services.
The latest enforcement actions by the SEC come a few days after the commission’s Chair, Gary Gensler, told news outlet CNBC that the United States does not need cryptocurrencies.
What is The Sandbox?
The Sandbox is a popular metaverse game built on Ethereum. It allows users to purchase land plots (NFTs) and customize them. It also features avatars that players use to interact with each other. The game’s native token, SAND, is used for making purchases and serves as a governance token, meaning holders can participate in voting processes.
Since 2021, The Sandbox has fostered partnerships with several celebrities and other companies building Web3 projects, including Warner Music Group, US rapper Snoop Dogg, Fashion brand Adidas, entertainer Paris Hilton, video game developer Ubisoft, and many more.
Despite the harsh regulatory environment, Borget insists that the United States is still a significant market for their metaverse game. He says one-third of The Sandbox users reside in the country.
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