Binance.US, the US-based subsidiary of the troubled Binance exchange, has described the lawsuit filed by the US Securities and Exchange Commission (SEC) against its platform as “baseless.” In a statement released on June 5, Binance.US stated that the lawsuit was another example of the financial regulator’s regulatory approach by enforcement towards the cryptocurrency industry.
According to the crypto exchange, the SEC is trying to “eradicate the industry” by taking legal action against rival platforms like Coinbase, Kraken, and Gemini. Binance.US has stated that the lawsuit is unjustified by the facts, law, or by the SEC’s own precedent. The platform believes that the relief sought by the SEC would harm investors and stifle innovation, and it would punish Binance.US and the industry, rather than working to allow American businesses to thrive.
Binance.US plans to defend itself against the lawsuit and has urged Congress to pass bipartisan legislation that creates a regulatory regime for digital assets and reins in bureaucratic overreach.
Binance’s Statement
Binance, the parent company of Binance.US, stated that it was disappointed with the SEC’s decision to file a lawsuit against the firm despite its “extensive good-faith discussions” and cooperation with the SEC’s investigations. According to Binance, the SEC’s failure to engage productively with the platform demonstrates “the Commission’s misguided and conscious refusal to provide much-needed clarity and guidance to the digital asset industry.”
Binance believes that the SEC has chosen to regulate with the blunt weapons of enforcement and litigation, rather than the thoughtful and nuanced approach that this dynamic and complex technology demands. Binance added that unilaterally labeling certain tokens and services as securities, even ones over which other US authorities have asserted jurisdiction, would only compound these problems.
The crypto exchange has accused the SEC of not being interested in protecting investors but rushing to claim jurisdictional ground from other regulators. In March, Binance was sued by the Commodity Futures Trading Commission (CFTC) over allegations of regulatory commodity violations. Binance believes that its size and global name recognition make it an easy target and that it is now “caught in the middle of a US regulatory tug-of-war.”
Industry Response
The crypto industry has rallied around Binance, with many criticizing the SEC’s regulatory approach. Some industry experts believe that the SEC’s crackdown on Binance is part of a broader effort to regulate the cryptocurrency industry better. Many have stated that it is time for the US government to create a regulatory framework that provides clarity and guidance for the industry.
Binance.US and its parent company, Binance, have slammed the SEC’s lawsuit against the platform as baseless. The crypto exchange believes that the SEC’s regulatory approach by enforcement towards the cryptocurrency industry is misguided and could harm investors and stifle innovation. Binance plans to defend itself against the lawsuit and has urged Congress to pass bipartisan legislation that creates a regulatory regime for digital assets. The crypto industry has rallied around Binance, with many criticizing the SEC’s regulatory approach and calling for a regulatory framework that provides clarity and guidance for the industry.