Binance.US, the U.S.-based subsidiary of global cryptocurrency exchange Binance, is preparing for legal battles against the Securities and Exchange Commission (SEC).
In a recent announcement, Binance.US indicated readiness for a prolonged legal discovery phase. The SEC has accused Binance.US of violating securities laws by offering unregistered investment products and committing anti-fraud breaches.
Binance.US emphasized its establishment solely to serve American customers and pledged strict adherence to U.S. regulations. However, it criticized the SEC’s regulatory methods, labeling them as “regulation by enforcement.” The exchange attributed its challenges partly to what it perceives as politically motivated actions under Chair Gary Gensler’s leadership.
Despite its confidence in legal standing, Binance.US pointed out that the SEC has yet to present evidence of any wrongdoing after an exhaustive 11-month discovery process. However, a recent court filing on June 28 did not dismiss most of the SEC’s claims, notably maintaining allegations against Binance CEO Changpeng “CZ” Zhao as a “control person.”
The saga underscores Binance.US’s complex legal battle with the SEC, highlighting broader tensions within the cryptocurrency regulatory landscape in the United States.