Binance.US, the American subsidiary of the global cryptocurrency exchange Binance, is gearing up for a prolonged legal battle with the U.S. Securities and Exchange Commission (SEC). The company has stated that it is fully prepared for the challenges ahead, anticipating a lengthy legal discovery process.
The Binance-SEC Legal Combat Continues
A U.S. federal court ruled that the SEC’s lawsuit against Binance.US will proceed, dealing a blow to the company’s attempt to dismiss the case. Judge Amy Berman Jackson ruled that the SEC’s allegations of securities law violations, involving the sale of unregistered investment products and breaches of anti-fraud provisions, warranted further examination in court. Despite this, Binance.US expressed readiness for the legal confrontation, stating in an X post,
We were prepared for this and look forward to having this case move forward in the judicial process.
Binance Criticizes SEC’s Limited Crypto Guidance
Binance.US has vocally criticized the SEC’s regulatory approach, accusing the agency of relying on “regulation by enforcement” rather than providing clear and consistent guidelines for the cryptocurrency industry. The company argued that it has consistently adhered to the limited guidance provided by the SEC and has implemented robust compliance measures to ensure the safety and security of its platform. Binance.US emphasized that it maintains a 1:1 reserve for all customer assets and has rigorous compliance and risk management programs in place.
SEC’s Arguments Are Unsupported by the Law, Claims Binance
In its defense, Binance.US asserted that the SEC has yet to present any substantial evidence of wrongdoing, despite an extensive 11-month discovery process. The company contends that the SEC’s case is not supported by the facts or the law, claiming that the agency’s accusations are politically motivated and stem from overreach by its current leadership. Binance.US highlighted that the SEC has not managed to prove any violation of securities laws by the exchange or its executives.
ZKsync Gains Momentum with Binance Listing After Trademark ControversyCourt Ruling Dismisses Allegations Against BNB’s Secondary Sale
In a partial victory for Binance, Judge Jackson dismissed the SEC’s allegations regarding the secondary sale of Binance’s BNB token as investment contracts. The court found that the SEC did not sufficiently demonstrate that these transactions met the criteria of the Howey Test, which is used to determine whether a financial transaction qualifies as an investment contract.
