The Accusation: SEC’s Overreach or Valid Concerns?
In the intense world of crypto regulations, Binance CEO Changpeng “CZ” Zhao and his exchange are taking a stand. On September 21, they filed a motion to toss out the lawsuit brought by the United States Securities and Exchange Commission (SEC), claiming the regulatory body has stepped beyond its legal boundaries.
A Detailed Response: The 60-Page Petition
In a hefty 60-page document festooned with legal jargon, Binance’s team argues that the SEC’s charges lack clear justification.
According to their stance, the SEC has been remiss in providing explicit guidelines for the crypto realm, effectively trying to exercise its authority retroactively. “This is like blaming a toddler for running on the playground before they were ever told not to,” one might say!
Misinterpretation of Securities Laws?
Binance’s lawyers assert that the SEC has fundamentally misinterpreted existing securities laws. They argue that the lawsuit attempts to reformulate legal frameworks to fit the crypto landscape, which they describe as distorting the text of the laws themselves. Talk about taking a creative liberty with the law!
The Ripple Effect: Binance.US Joins the Fray
Not wanting to sit on the sidelines, Binance.US (formally BAM Trading Services) filed its own motion on the same day, seeking to dismiss charges in a separate 56-page effort. Clearly, the American branch isn’t sitting idle while the mother ship is under fire!
The Fallout: Trading Volume and Workforce Reduction
The SEC’s aggressive stance has sent shockwaves through Binance.US. Trading volumes have plummeted by a jaw-dropping 98% since September 2022, leading to significant layoffs. Just imagine the poor HR manager having to deliver that news—”Hey, we’ve got some downsizing to do!”
Additionally, CEO Brian Shroder joined the ranks of the departed, leaving many wondering what’s next for the company.
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