Binance.US Prepares for Legal Battle with SEC

Twitter icon  •  Published 1 week ago  •  Hassan Maishera

Binance.US prepares for an extended legal confrontation with the SEC, asserting compliance while criticizing the regulator's approach.

Binance.US, the American branch of global cryptocurrency exchange Binance, is readying itself for a prolonged legal confrontation with the Securities and Exchange Commission (SEC).

The company recently announced on social media platform X:

"The Court has decided that the SEC's case against Binance.US will proceed. We anticipated this outcome and are prepared to advance through the judicial process."

Regulatory Compliance

Binance.US emphasizes its dedication to U.S. regulations, stating it was established specifically to serve American customers. The company asserts:

"We maintain full reserves for all customer assets and have implemented robust compliance and risk management programs to ensure platform integrity."

The SEC's allegations against Binance.US include securities law violations, offering unregistered investment products, and anti-fraud breaches.

Criticism of SEC Approach

Binance.US has criticized the SEC's regulatory strategy, describing it as "regulation by enforcement." The company suggests that current challenges stem from politically motivated actions under SEC Chair Gary Gensler's leadership.

Despite Binance.US's confidence in its legal position, claiming the SEC has found no evidence of wrongdoing during an 11-month discovery process, the company failed to have most of the SEC's claims dismissed in a recent court filing.

Notably, the allegation that Binance CEO Changpeng "CZ" Zhao acted as a "control person" remains part of the SEC's case.

As the legal process unfolds, Binance.US maintains its stance on regulatory compliance while preparing for an extended legal battle with the SEC.

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Author

Hassan Maishera

Hassan is a Nigeria-based financial content creator that has invested in many different blockchain projects, including Bitcoin, Ether, Stellar Lumens, Cardano, VeChain and Solana. He currently works as a financial markets and cryptocurrency writer and has contributed to a large number of the leading FX, stock and cryptocurrency blogs in the world.