Binance.US, the US affiliate of crypto exchange Binance, has responded strongly to the civil enforcement action filed by the Securities and Exchange Commission (SEC).
In its latest filing, Binance.US refuted the SEC’s claims, arguing that the regulator’s allegations are baseless. The company also highlighted the potential detrimental consequences of a temporary restraining order, emphasizing its impact on customer interests and the ability to defend against the litigation.
Additionally, Binance.US criticized the SEC for failing to provide clarity on cryptocurrency regulations and drew attention to its extensive cooperation efforts during the investigation.
Key Points:
- Binance.US disputes the SEC’s claims and calls for the dismissal of the civil enforcement action.
- The company argues that the SEC has not identified any securities trading on its platform.
- Binance.US warns that a restraining order would harm customers and hinder its ability to fund its defense.
- The filing criticizes the SEC’s request as “draconian and unduly burdensome.”
- Binance.US highlights the long-standing operation of cryptocurrency exchanges without SEC interference.
- The company stresses its significant cooperation with the SEC’s investigation over the past three years.
- Binance.US produced a substantial amount of documents and communications in response to subpoenas.
- Similar frustrations over regulatory clarity were expressed by Robinhood and Coinbase.
Implications and Industry Concerns
The response from Binance.US sheds light on the ongoing struggle for regulatory clarity in the cryptocurrency industry. The company’s criticism of the SEC’s approach and lack of response mirrors concerns expressed by other prominent players, such as Robinhood and Coinbase.
These challenges further underscore the need for clearer guidelines and effective communication between regulators and crypto firms.
The outcome of this legal battle will likely have broader implications for the regulatory landscape and how exchanges operate in the United States.
