Binance.US ‘prepared’ for SEC legal showdown

The NFT Unicorn 78a5a125-1df4-40c5-822a-06f9f78f0e9c Binance.US ‘prepared’ for SEC legal showdown Crypto News

Binance.US, the United States-based arm of the global cryptocurrency exchange Binance, is gearing up for legal battles with the Securities and Exchange Commission (SEC).

According to the X post announcement, Binance.US has expressed a readiness for an extended period of legal discovery.

“On Friday, the Court decided that the SEC’s case against Binance.US will continue. We were prepared for this and look forward to having this case move forward in the judicial process.”

Related: SEC claims Binance.US ‘unwilling’ to give info, requests court intervenes

Binance’s commitment to U.S. regulations

The SEC’s allegations revolve around securities law violations, offering unregistered investment products and anti-fraud breaches.

Binance.US said it was created for the “express purpose of serving” U.S. customers and would adhere to U.S. rules and regulations.

“We maintain 1:1 reserves for all customer assets and have robust compliance and risk programs which ensure the safety, security, and integrity of our platform.”

Related: Binance.US says it’s ‘radioactive’ to banks, SEC dealt ‘near-mortal blow’

Binance.US criticizes the SEC

The centralized cryptocurrency exchange criticized the SEC’s regulatory approach, describing the federal agency as “regulation by enforcement.”

Binance.US also attributed the firm’s challenges to politically motivated actions by the current administration, led by Chair Gary Gensler.

“It is unfortunate that we, like many companies in our industry, have fallen victim to the SEC’s regulation by enforcement approach and politically motivated overreach under its current leadership.”

Related: Court status report confirms Binance, SEC at odds

SEC extended discovery, CZ claim

Binance.US expressed confidence in its legal standing, stating that the SEC has “yet to identify any evidence of wrongdoing on the part of Binance.US.”

Through an 11-month discovery process, Binance.US said that the SEC’s case “is unsupported by the facts or the law.”

Despite the firm’s confidence, it failed to convince a U.S. court to dismiss most of the SEC’s claims against it in a June 28 court filing.

In the filing, the SEC’s allegation that Binance CEO Changpeng “CZ” Zhao acted as a “control person” remained unaffected by Binance’s attempt to have it dismissed.

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