Binance.US, the American branch of global cryptocurrency exchange Binance, is preparing for a protracted legal confrontation with the Securities and Exchange Commission (SEC). The exchange highlighted its commitment to regulatory compliance while criticizing the SEC’s enforcement tactics.
SEC Allegations and Binance.US’s Response
The SEC’s case against Binance.US includes accusations of securities law violations, offering unregistered investment products, and anti-fraud breaches. Binance.US, in a recent X post announcement, expressed readiness for an extensive period of legal discovery following the court’s decision to continue the case.
“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 statement read.
Binance.US reiterated its creation for the “express purpose of serving” U.S. customers, ensuring adherence to U.S. rules and regulations. The company emphasized its robust compliance and risk programs, maintaining 1:1 reserves for all customer assets to ensure platform integrity and security.
Criticism of SEC’s Approach
Binance.US has been vocal about its criticism of the SEC’s regulatory methods, describing them as “regulation by enforcement.” The exchange accused the current administration, led by SEC Chair Gary Gensler, of politically motivated actions that have adversely affected many companies in the cryptocurrency industry.
“It is unfortunate that we, like many companies in our industry, have fallen victim to the SEC’s regulation by enforcement approach and politically motivated overreach under its current leadership,” Binance.US stated.
Legal Proceedings and Challenges
Despite Binance.US’s confidence in its legal standing, asserting that the SEC has yet to present evidence of wrongdoing, a U.S. court recently rejected the exchange’s attempt to dismiss most of the SEC’s claims. This includes the allegation that Binance CEO Changpeng “CZ” Zhao acted as a “control person.”
The exchange’s preparations for a lengthy legal process underscore its commitment to defending its practices and operations. Binance.US continues to maintain that its actions are compliant with U.S. regulations and that the SEC’s case is not supported by facts or law.
