Binance.US Challenges Regulatory Actions
In a bold move to protect its operations, Binance.US has formally requested the court to reject the Securities and Exchange Commission (SEC)’s plea for a temporary restraining order on its assets. The exchange argues that approval of this order would basically signal the demise of its business.
What’s Cooking in Court?
As of June 12, Binance.US didn’t hold back when it described the SEC’s emergency motion as “draconian and unduly burdensome.” This showdown has set the stage for a hearing on June 13 in the U.S. District Court for the District of Columbia, where both parties will lay their cases bare.
Binance’s Legal Battle Begins
In what could turn into a legal saga, Binance and its affiliates filed extensive opposition pleadings against the SEC’s emergency order. John Reed Stark’s tweet captured the spirit, hinting at how crucial these documents could be in outlining their defense strategies. Spoiler: it’s going to be something extraordinary!
Customer Concerns Front and Center
Binance.US claims the SEC’s requested relief goes beyond just a restraining order. They argue it could effectively put BAM Trading Services Inc. — which is the backbone of Binance.US’s trading services — out of business. Binance stated, “The requested relief would primarily harm BAM’s customers and prevent BAM from defending itself in this litigation,” which sounds like a very fancy way of saying that your average Joe trader might be left holding the bag if the SEC gets its way.
SEC’s Claims Under Scrutiny
Digging deeper, Binance.US takes a major swing back at the SEC’s allegations which suggest that numerous cryptocurrencies should be classified as securities. In their filing, they emphatically state, “The SEC has not identified a single security trading on BAM’s platform.” It’s like saying, “Hey, we’ve been playing basketball all this time without ever having a ball in hand!”
A History of Cooperation
Additionally, Binance.US pointed out that they have attempted to be transparent and cooperative with an ongoing SEC investigation dating back to December 2020. They claim this included providing over 700,000 individual communications—sounds like they’ve been more than chatty with the regulators!
What Happens Next?
The drama continues as Binance faces serious allegations. The SEC accuses Binance of not registering as a securities exchange and unlawfully allowing U.S. customers to trade cryptocurrencies it considers securities. They even implicated Binance CEO Changpeng Zhao (CZ) claiming he has access to customer funds, which raises eyebrows across the board.
As this saga unfolds, Binance and its supporters can only hope that their extensive pleadings and cooperative history shine through, while the SEC looks to tighten its grip on cryptocurrency regulations. We’re all on the edge of our seats for the court’s decision and what it could mean for the future of crypto trading in the U.S.!
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