- Court upholds SEC’s initial claims against Binance.US and CEO CZ.
- Binance.US insists SEC found no evidence in 11-month discovery.
- Legal battle to impact U.S. crypto exchange operations.
Binance.US is gearing up for a long fight with the Securities and Exchange Commission (SEC). The company announced that the court ruled in favor of the SEC’s lawsuit regarding suspected potential infringement on the securities law.
The company stated it was prepared to actively take part in the legal process of discovery, which was declared last Friday.
On Friday, the Court decided that the SEC’s case against https://t.co/AZwoBOh0gq will continue. We were prepared for this and look forward to having this case move forward in the judicial process.https://t.co/AZwoBOh0gq was established with the express purpose of serving United…
— Binance.US(@BinanceUS) July 1, 2024
(@BinanceUS) Legal Position of Binance.US
Designed with the American client in mind, the exchange ensures complete reserves of all customer assets. Moreover, the organization has established extensive controls for compliance and risk management. These efforts are for the safety, security, and overall integrity of their platform.
This is not the first time the exchange took issue with the SEC’s regulatory approach, characterizing it as “regulation by enforcement.” In any case, Binance.US termed the policy hyper-aggressive and politically charged under the aegis of new SEC Chair Gary Gensler.
However, the company remains optimistic about its legal standing. It insists that after months of an 11-month-long discovery process, the agency hasn’t found any evidence supporting its allegations.
Legal Proceedings and Company Outlook
Despite Binance.US being in a solid defense, a recent court ruling came out, which upheld most of the SEC accusations, including on CEO Changpeng “CZ” Zhao. The company’s lawyers have refuted the accusations as baseless and falling far off the mark of merit and facts.
However, the court did not dismiss key accusations but upheld the determination being done on the ongoing legal proceedings. Binance.US is still confident and booming when it goes through the challenges given by the current regulatory environment that deals with the SEC.
The case’s outcome may have various effects on the crypto business in the United States and, most importantly, the operation of the crypto exchanges within the regulated boundaries.
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