Binance.US Embraces Continuing Battle With SEC

Binance.US Awaits Court Showdown Over SEC Allegations

In an unperturbed response to recent legal developments, Binance.US announced on Monday its anticipation to vigorously defend itself in the face of the Securities and Exchange Commission’s (SEC) continuing lawsuit, a move that underscores the growing friction between regulatory bodies and the burgeoning cryptocurrency sector. The lawsuit, which was green-lit by a court decision allowing the case to advance, puts the spotlight on the regulatory challenges facing digital asset exchanges in the United States.

Via a statement disseminated on the social media platform X, Binance.US articulated its confidence in confronting the allegations head-on, emphasizing its belief in the lawfulness of its operations amidst accusations of securities violations. “We have consistently navigated the nascent regulatory framework provided by the SEC to ensure our operations align with U.S. legal expectations,” the cryptocurrency exchange declared, signaling its readiness for the legal battle ahead.

Binance.US’s stance comes in the wake of allegations by the SEC, which in June 2023, took action against Binance Holdings Ltd., BAM Trading Services, BAM Management U.S., and founder Changpeng “CZ” Zhao for purported violations of U.S. securities law. Central to the Commission’s concerns is the allegation that Binance.US’s customer assets might be at risk of unauthorized access by employees of the global Binance entity beyond U.S. shores.

In defense, Binance.US highlighted its adherence to U.S. laws and regulations from its inception, pointing to its efforts to maintain a 1:1 reserve for customer assets and the execution of rigorous compliance and risk management protocols aimed at safeguarding its platform’s integrity.

Moreover, Binance.US lambasted the SEC’s approach as “regulation by enforcement,” accusing the regulatory agency of engaging in politically driven overreach under the direction of Chairman Gary Gensler. The firm argued that extensive discovery processes have yet to unveil any substantive evidence by the SEC of any misconduct, bolstering its assertions of innocence.

“We stand firm in our belief that the factual and legal grounds of the SEC’s case are without merit, and we anticipate the judiciary will, in time, affirm our stance,” Binance.US expressed, indicating a staunch belief in achieving a favorable judicial outcome.

Despite the looming legal entanglements, Binance.US assured that its operations would continue seamlessly, with ongoing plans to roll out new features and updates—a testament to its resilience in the face of regulatory adversity.

As this legal saga unfolds, the SEC’s silence in response to requests for comment only heightens the suspense and intrigue surrounding this case, making it a focal point of discussion within financial and regulatory circles.