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Binance.US vs. SEC: Will the crypto regulator be next on the stand?

Fri 23 Jun 2023 ▪ 3 min of reading ▪ by Mikaia A.
Crypto regulation

Many believed that Binance would come to an early end after the SEC began its attack earlier in June. But the tables have turned in recent days. The court recently ordered the two protagonists to reach an out-of-court settlement. According to the latest news, Binance.US is about to take the matter to court over a mistake made by the SEC.

SEC and Binance logos

Binance US strikes back

In response to the SEC’s accusations, the leaders of Binance have promised a serious counterstrike that will surely make their opponent fold. Last week, it was revealed that Judge Amy B. Jackson instructed both parties to resolve the matter peacefully.

However, a recent article by Coinspeaker highlighted a reversal of the situation. The crypto media outlet mentioned an accusation of false statements issued by the SEC. Binance.US clarified that the SEC has no evidence to support its claim that the crypto exchange mixed user funds.

Binance accuses the SEC

« LMAO Binance vs SEC #FireGensler

Court: ‘I want to know, are BAM assets going offshore? Is it happening or is it not? It’s stunning to me that I’ve now asked this question to each of the SEC attorneys 5 times.’

SEC: ‘So currently the assets are not going offshore… We’re not seeing any flows of money outside the US’

The SEC’s statement alleging that the defendants were able to mix client assets or divert client assets at their discretion is directly contradicted by the SEC’s statements to the Court that they have no evidence that this ever occurred. »

As a reminder, Gurbir S. Grewal, the director of the SEC’s Division of Enforcement, was behind this accusation. He revealed that Binance and CZ were mixing client assets without their knowledge, just as SBF did with FTX and Alameda Research.

Unfortunately, such practices increase the risk of loss of BNB investors’ assets.

The SEC is not invincible

The outcome of the Ripple case taught us that the SEC does not always emerge victorious in court. Could this be the reason for Binance’s administrators’ defiance?

In any case, Binance.US will not be intimidated by Gary Gensler, who is already a candidate for the position of informal advisor to the crypto exchange.

If approved by a judge, Binance.US will gain the following: the SEC will not be able to make statements about the crypto exchange at will. Such statements could potentially disrupt clients.

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Mikaia A. avatar
Mikaia A.

La révolution blockchain et crypto est en marche ! Et le jour où les impacts se feront ressentir sur l’économie la plus vulnérable de ce Monde, contre toute espérance, je dirai que j’y étais pour quelque chose

DISCLAIMER

The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.