The post Binance.US Fires Back at SEC’s ‘Draconian’ Freeze Order: Are the Claims Valid? appeared first on Coinpedia Fintech News
Binance.US is not going down without a fight. On June 12, just a day before a scheduled hearing on the SEC’s proposed temporary restraining order on its assets, Binance.US lodged a strong defense, contending that the move could be the end of its business. Will the court agree with Binance.US’s viewpoint, and could this move mark a significant turn in the SEC’s approach to cryptocurrency regulation?
Criticizing SEC’s ‘Draconian’ Motion
The popular cryptocurrency exchange labelled the SEC’s emergency motion for a temporary restraining order as ‘draconian and unduly burdensome.’ This hearing, set for June 13, could have a monumental impact on the fate of Binance.US and its related entity, BAM Trading Services Inc., which provides the company’s crypto trading and exchange services. What will the outcome of this hearing mean for Binance.US’s future and its customers?
Binance.US Fires back
In an aggressive legal stance, Binance.US fired back at the regulator’s entire methodology, asserting that the SEC’s claims are baseless since it has not identified a single security being traded on BAM’s platform. Binance.US challenged the regulator’s broad assumption that cryptocurrencies are securities, pointing out the long-standing operation of several cryptocurrency exchanges, including BAM, in the U.S. without SEC interference. Is the SEC overreaching, or is there merit to their claims that these cryptocurrencies are indeed securities?
Also Read – Binance’s Billion-Dollar Blunder: Are Criminal Charges Imminent?
Recapping SEC’s Legal Action
The SEC launched major legal action against Binance and its affiliates on June 5, alleging that the exchange allowed U.S. customers to trade cryptocurrencies it deems are securities. The regulator has also accused Binance’s CEO, Changpeng Zhao, of having access to and moving Binance.US customer funds. Following these accusations, the SEC sought an emergency restraining order on Binance.US’s assets. However, Binance.US rebuts these claims and questions the SEC’s inability to cite any instances of customer asset mishandling.
Binance has been cooperating with SEC’s Investigation
In its defense, Binance.US also detailed its extensive cooperation with the SEC’s ongoing investigation since December 2020. It shared over 700,000 individual communications and other key operational data. However, this cooperation has landed them in the crosshairs of the regulator. Could Binance.US’s openness during the investigation be used against it?
Is this case a pivotal moment for the SEC’s approach to cryptocurrency regulation? How will this case shape the future of cryptocurrency exchanges operating in the U.S., and what will this mean for crypto investors? Only time will tell.
Also Read – Breaking: Binance CEO Issues Open Letter to Tackle SEC’s ‘Absurd’ Use of Leaked Chats as Evidence