Key takeaways:
- Binance US, the US division of the international crypto exchange, is preparing for court cases against the SEC.
- According to Binance US, it was established with the “express purpose of serving” US clients and will abide by US laws and regulations.
Binance US, the US division of the international crypto exchange, is preparing for court cases against the Securities and Exchange Commission (SEC).
The X post announcement states that Binance US has indicated that it is prepared to engage in a protracted legal discovery process.
“On Friday, the Court decided that the SEC’s case against Binance.US will continue. We were prepared for this and look forward to having this case move forward in the judicial process.”
The claims made by the SEC center on marketing unregistered investment products, breaking anti-fraud laws, and breaking securities laws.
According to Binance US, it was established with the “express purpose of serving” US clients and will abide by US laws and regulations.
“We maintain 1:1 reserves for all customer assets and have robust compliance and risk programs which ensure the safety, security, and integrity of our platform.”
The SEC is a federal organization that the centralized crypto exchange described as “regulation by enforcement,” criticizing its regulatory strategy.
Additionally, Binance US blamed the company’s difficulties on politically driven measures taken by the present administration, which is headed by Chair Gary Gensler.
Binance US expressed regret over falling victim to what they describe as the SEC’s regulation-by-enforcement approach and politically motivated overreach under its current leadership, a predicament they believe many companies in the industry share.
Binance US stated that it is confident in its legal position and that the SEC has not yet found any evidence of Binance US’s misconduct.
Binance US stated that the SEC’s lawsuit is not supported by the “facts or the law” following an 11-month discovery process. In a June 28 court filing, the firm attempted to persuade a US court to dismiss the majority of the SEC’s allegations against it, but it was unsuccessful.
Despite Binance’s efforts to have the SEC’s claim about Changpeng Zhao (CZ), the CEO of Binance, being a “control person,” it was nonetheless included in the filing.
