Binance.US Ready for SEC Legal Battle, Criticizes Regulation by Enforcement Approach
Summary:
Binance.US, the American subsidiary of the global cryptocurrency exchange Binance, is gearing up for a potential legal fight with the Securities and Exchange Commission (SEC). The company has expressed readiness for an extended legal discovery process and is confident in its regulatory standing despite the SEC's allegations involving securities law violations and potential fraud. The company criticized the SEC's "regulation through enforcement" approach and claimed that the regulatory problems are politically motivated under the current leadership of Chair Gary Gensler.
Binance.US, the American arm of the global crypto exchange Binance, is preparing for potential legal confrontation with the Securities and Exchange Commission (SEC). Per the recent announcement, Binance.US is ready to undergo an extended legal discovery process. "The court on Friday decided to proceed with the SEC's case against Binance.US. We were fully prepared for this and are eager for the case to advance through the legal system." It was added.
The SEC accusations against the company include violation of securities laws, offering unregistered investment vehicles, and potential fraud. Binance.US expressed that the platform was established with the primary intent of catering to U.S. clients while adhering strictly to local rules and regulations. "We have robust programs for compliance and risk management which ensure the reliability, safety, and integrity of our platform. We also hold 1:1 reserves for all customer assets."
Binance.US criticised the SEC's regulatory approach, labelling the federal body as practicing "regulation through enforcement." The company also pinned its difficulties on politically driven actions by the current leadership, spearheaded by Chair Gary Gensler. "Regrettably, several businesses in our industry, including ours, have become victims of the SEC's regulation through enforcement approach and its politically motivated overreach under the present leadership.”
Despite the SEC's extended legal discovery, Binance.US remains confident about its standing, reporting that the SEC "has yet to present any evidence indicating Binance.US's misconduct." Following 11 months of legal discovery, the exchange claims the SEC's case "lacks support from any concrete facts or applicable laws." Despite this assertion, Binance.US was unable to persuade the court to dismiss most of SEC's allegations in a court filing dated June 28. In this document, the SEC's claim that Binance CEO Changpeng "CZ" Zhao operated as a "controlling person" remained undisputed.
Published At
7/2/2024 10:59:46 AM
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