- Binance.US has announced its readiness to counter the US Securities and Exchange Commission (SEC) after the latter’s case against the crypto exchange was allowed to proceed by the court.
- In an official statement on X, Binance.US reaffirmed its commitment to the ongoing legal battle with the SEC.
- Binance.US criticized the SEC’s regulatory strategy, claiming it was politically motivated and an overreach of authority.
Binance.US is steadfast in its resolve to maintain compliance and protect its customers amid ongoing legal challenges from the SEC.
Binance.US Challenges SEC’s Enforcement Approach
Binance.US has taken issue with the SEC’s limited guidance for the cryptocurrency industry, insisting that it has operated within the bounds of regulatory compliance. The crypto exchange criticized the SEC’s regulation-by-enforcement approach and suggested that the agency’s actions are driven by political motives rather than genuine regulatory concerns.
Furthermore, Binance.US emphasized its commitment to customer protection, stating that it maintains a 1:1 reserve for all customer assets and implements robust compliance and risk management programs to ensure platform security.
“We remain confident in our position that the SEC’s case is unsupported by the facts or the law and that the Commission lacks the very authority it is seeking to wield in bringing its action against us. We believe this position will be validated by the Court in due course.”
Ongoing Legal Battle Between Binance.US and SEC
In June, the SEC filed a lawsuit against Binance Holdings Ltd., BAM Trading Services, BAM Management US, and founder Changpeng “CZ” Zhao, accusing them of multiple violations of U.S. securities laws.
The SEC also claimed that Binance employees outside the U.S. could improperly access and control Binance.US customer assets. Binance.US, however, has consistently argued that the SEC has not produced any evidence of misconduct during the extensive 11-month discovery process.
In September, Binance argued against the SEC’s claims and sought the dismissal of the case, asserting that the SEC was exceeding its jurisdiction concerning foreign crypto transactions. U.S. District Judge Amy Berman Jackson ruled that while most of the SEC’s lawsuit would proceed, one count would be dismissed, and two others would partially proceed.
Conclusion
Binance.US remains determined to challenge the SEC’s allegations, standing firm in its belief that the regulatory body lacks the authority to pursue many of the claims in its lawsuit. As the case progresses, the outcome will likely set important precedents for the regulation of the cryptocurrency industry in the United States. Meanwhile, Binance.US continues to emphasize its commitment to compliance and customer security.
