On Thursday, September 21, Binance sent a 60-page petition to the court calling the SEC’s allegations baseless. In June, the SEC filed a complaint against Binance, accusing the exchange of a number of offenses: misuse of customer funds, misleading investors and regulators, and violating securities laws.
“The SEC is trying to impose a retroactive fine on Binance before the agency issues any guidance regarding cryptocurrencies. By attempting to gain regulatory authority over the crypto industry, the regulatory agency is misrepresenting securities laws,” Binance’s lawyers argued in the petition.
Another, separate document is filed to dismiss a lawsuit against a Binance.US division known as BAM Trading Services. In early August, Zhao denied rumors about the closure of the American division, which appeared due to pressure from the regulator on the exchange.
Binance managed to score a small win over the SEC earlier this week. On September 19, a federal court denied the department access to study and verify Binance.US software. The department should have prepared more specific requests and talked to additional witnesses, the judge explained.
Lawyer Jeremy Hogan saw some irony in the situation with Binance. In 2023, the exchange was sued not only by the SEC, but also by the US Commodity Futures Trading Commission (CFTC). Hogan joked that a third regulator could file a lawsuit against the exchange “for the company.”
“In March, Binance was sued by the CFTC for calling BUSD a commodity. Just three months later, the SEC also filed a lawsuit against Binance, alleging that BUSD is an unregistered security. If the US Financial Crimes Enforcement Network (FinCEN) complains about Binance and calls BUSD a currency, then Binance will be at war with the entire Holy Trinity!”
wrote Hogan on Twitter (X).
Changpeng Zhao has high hopes for the judiciary – he is confident that with its help, cryptocurrency companies will be able to achieve clarity in regulating the industry.
Source: Bits
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