Binance.US Enlists Ex-SEC Official Amid Legal Trouble: Impact on Crypto Industry

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Crypto courtroom drama, former SEC official aiding Binance.US, intense legal battle, chiaroscuro lighting, tense atmosphere, regulations and uncertainty looming, American flag subtly in background, chess pieces representing strategic moves, shadowy figures of industry leaders, blend of realism and abstraction, blue and gray color palette.

In a strategic move to tackle a lawsuit alleging its status as an unregistered securities exchange, Binance.US has reportedly enlisted the services of former Securities and Exchange Commission (SEC) enforcement co-director George Canellos. Along with three other lawyers, Canellos brings his expertise in SEC regulation to the crypto exchange as it faces difficulties in maintaining unfrozen assets.

Canellos boasts an impressive tenure at the SEC, where he occupied various leadership positions for over four years before departing the agency in 2014. This development comes as Binance.US faces legal action from the SEC, which accuses the exchange of failing to register as an exchange, broker, and clearing agency. Interestingly, both Binance and Coinbase are implicated in similar accusations under the same filing.

Given the significant allegations made by the CFTC and SEC against the exchanges, a subsequent Department of Justice (DOJ) prosecution could seek prison time for any convicted individuals. By hiring Canellos, Binance.US demonstrates its readiness to face any ensuing criminal prosecution.

As the SEC attempts to freeze the assets of the US-based exchange, Binance.US maintains that the proposed remedies would effectively terminate the company’s operations. This court ruling has additional implications for the exchange, which has already suspended US dollar deposits and may be forced to pause fiat withdrawals as early as June 13th.

Critics of the SEC’s seemingly aggressive approach to crypto enforcement, particularly within US lawmakers and industry leaders, condemn the regulatory body for its overreach. Congressman Warren Davidson recently unveiled a proposed bill aimed at ousting SEC Chair Gary Gensler. As these weighty regulatory decisions play out in courts and exchanges, the future of the crypto industry faces uncertainties and possible major shakeups.

Source: Cointelegraph

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