Binance has, in response to the lawsuit filed by the US Securities and Exchange Commission (SEC), portrayed disappointment by the move. The leading crypto exchange by transactions volume decried the enforcement by the US regulator as unreasonable.
Binance Battling 13 Charges Filed by SEC
Binance considers the lawsuit filed by SEC to constitute an enforcement action imposing an unreasonable burden on the crypto exchange. The crypto exchange reacted to the 13 civil charges it faces alongside its chief executive Changpeng Zhao, where the SEC alleges violation of securities rules.
The American regulator detailed in the court documents that the crypto giant deliberately overlooked the provisions of US securities laws to risk clients’ money. Its press release echoed the submission before the District of Columbia Court, accusing Binance of prioritizing profit and compromising the stipulated safeguards.
SEC Accused of Refusing Productive Engagement
Binance admitted the disheartening feeling of the US securities watchdog’s refusal to engage in productive engagement. The company’s statement accused the SEC of orchestrating a conscious refusal to offer the clarity and guidance the digital asset industry sought.
Binance claims the move by SEC to initiate a lawsuit against various crypto firms undermines the US credentials of becoming the global hub in financial innovation, leadership, and integration.
Binance restates the sentiments conveyed by Coinbase that its executive engaged SEC to pursue good-faith discussions. The Zhao-led firm decried that SEC ditched the alternative of a negotiated settlement in resolving the investigations. Instead, the Commission abandoned the process in preference of acting unilaterally and litigating.
SEC Tough Crackdown Termed a Threat to Crypto Industry
Binance’s statement incorporated comments aired by several US lawmakers, majorly Republicans, condemning the regulator as launching a tough crackdown on the digital asset industry.
Binance admits that digital asset laws are majorly underdeveloped worldwide, with few exceptions. Nonetheless, regulation by enforcement is hardly the ideal path to pursue. The crypto firm emphasizes the need for a collaborative, thoughtful, and transparent policy engagement path that SEC has customarily abandoned.
Binance’s noncommital statement criticizes the aggressive pursuit portrayed by US regulators to enforce compliance since the FTX implosion in November 2022. The action undertaken by the Gary Gensler-led commission aligns with the previous initiatives subjecting other crypto projects to lawsuits.
SEC Move to Unilaterally Label Crypto Tokens Securities Questioned
Binance accuses SEC of overlooking the viability of deploying a nuanced and thoughtful approach to the formulation framework for the complex and dynamic technology. Binance regrets the move by SEC to unilaterally label tokens and crypto services as securities, particularly even those other US authorities already asserted jurisdiction.
The SEC has in 2023 targeted US-based crypto exchanges, including Coinbase, Bittrex, and Kraken, citing they offer unregistered securities. Binance opposes the SEC’s move by reiterating the safety of user assets within its platform and Binance.US. Suggesting risk on the assets is irresponsible, destructive to investors, and abusing the judicial process.
The news of the SEC preferring a lawsuit against Binance plunged the BNB token to levels of the worst-performing cryptocurrencies. The native token tanked 10% in the past 24 hours to exchange hands at $276.54.
Binance emphasized the autonomy of Binance.US as a crypto exchange platform exclusively for US citizens. The statement indicated that Binance.US runs independently despite utilizing the Binance logo. The statement dismissed the allegations by SEC that Binance and Zhao secretly exercised control over the US platform’s operations.
Binance Optimism to Fight Misguided Lawsuit Against Industry Partners
Binance revealed in the press release statement of cooperating with policymakers and regulators globally, portraying it as the appropriate move for any company. The Zhao-led company expressed devotion to embracing productive engagement in formulating crypto regulation. It adds that the framework should foster innovation and safeguard consumer protection.
Binance’s statement ruled out the global operations being a US exchange. As such, it termed SEC’s reach as limited in its actions. Nevertheless, it promised to support other digital asset operators to resist the SEC’s overreach and misguided lawsuits legally.
Finally, Binance promised to sustain unceasing efforts to deliver safe and trusted user exchange. Doing so involves protecting its core value of extending freedom of money.
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