In a recent legal development, Binance.US has submitted its defense against the Securities and Exchange Commission’s (SEC) claims, ahead of the hearing on whether its funds will be frozen. The crypto exchange slammed the SEC’s emergency motion for a temporary restraining order on its business, stating that it would “effectively end” its business and primarily harm its customers. Binance.US also took aim at the regulator’s entire approach to pursuing legal action against it, asserting that “all of the SEC’s claims fail” because the regulator has not yet “identified a single security trading on BAM’s platform.”
On the other hand, the SEC argues that cryptocurrency should be considered a security, but Binance.US refutes this claim, pointing to the fact that numerous cryptocurrency exchanges have operated in the United States for years without interference by the SEC. The crypto exchange also mentioned that it had made “significant efforts” to cooperate with an ongoing SEC investigation that began on Dec. 20, 2020, which has yielded more than 700,000 individual communications and “bespoke data” on its day-to-day operations.
The SEC first launched major legal action against Binance and its affiliates on June 5, accusing the crypto exchange of failing to register as a securities exchange and for allowing U.S. customers to trade cryptocurrencies it claims are securities. In this case, the SEC also accused Binance CEO Changpeng Zhao (CZ) of being able to access Binance.US customer funds and moving $12 billion in Binance’s funds through a privately-controlled entity called Merit Peak. Binance and Binance.US have repeatedly denied the SEC’s claims on social media, but the recent memorandum submitted alongside the filing marked their first official response to the accusations.
While Binance.US argues that the restraining order will harm its customers and put its business at risk, the SEC maintains that its legal actions are necessary to ensure the protection of investors. As the debate continues, it becomes increasingly important for both proponents and skeptics of the crypto space to stay informed about these legal developments and the potential impact on the industry’s future.
Source: Cointelegraph
