Binance.US Prepares for Legal Fight with SEC Over Compliance

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As an analyst with a background in financial regulation and experience following the crypto industry, I believe that Binance.US is taking a firm stance in response to the ongoing legal battle with the SEC. The company’s statement highlights its commitment to compliance and customer safety while expressing frustration over the SEC’s regulatory approach.

As a legal analyst, I can share that Binance.US, the American branch of the renowned cryptocurrency exchange Binance, is readying itself for the ensuing judicial confrontation with the Securities and Exchange Commission (SEC).

As a researcher examining social media discourse, I came across a post from Company X where they addressed allegations concerning potential securities law infringements. The organization clarified their stance on the matter and defended their legal position in response.

On Friday, the court chose to keep the SEC’s legal action against X Corp. ongoing. We had anticipated this outcome and are eager to advance through the judicial proceedings with this company, which was specifically founded to serve United States… (or: This company, which was set up to serve the US market, will see its legal battle with the SEC proceed further in the courts, as decided on Friday.)

— Binance.US 🇺🇸 (@BinanceUS) July 1, 2024

“Using the scant direction provided by the Securities and Exchange Commission (SEC) to the crypto industry, Binance.US has consistently strived to run its business in accordance with applicable regulations.”

As a researcher examining the events surrounding Binance.US, I can share that this American branch of Binance, set up to cater to US clients in accordance with local laws, encountered legal issues with the Securities and Exchange Commission (SEC) last June 2023. The SEC brought allegations against Binance Holdings Ltd., BAM Trading Services, BAM Management U.S., and Changpeng Zhao for their handling of customer assets.

Binance.US reaffirmed its dedication to safeguarding customers’ assets by keeping a one-to-one reserve and implementing robust compliance and risk management procedures.

As a researcher examining this issue, I’ve come across concerns raised by companies regarding the Securities and Exchange Commission (SEC) allegedly employing “regulation through enforcement.” This practice, most notably during the tenure of Chairman Gary Gensler, has been a topic of debate.

Despite the ongoing legal disputes, Binance.US maintains its confidence in its defense. It contests the SEC’s allegations, arguing that the regulatory body has yet to present concrete evidence of any wrongdoing. Furthermore, Binance.US questions the legitimacy of the SEC’s case against it, deeming it both factually and legally unjustified.

Binance.US stated with confidence that the SEC’s accusations against them are unfounded in facts and law, and the Securities and Exchange Commission does not possess the necessary power to take legal action against them.

Binance.US asserts confidence in the court’s decision, expressing optimism for a favorable result. At the same time, they assure their users that business will carry on as usual and upcoming features will still be rolled out.

As a researcher studying the dynamic interplay between digital asset exchanges and regulatory bodies, I’ve been closely following the developing situation between Binance and its user base in the United States. The escalating legal dispute underscores the complexity and tension that arises when innovative technologies collide with existing regulatory frameworks. Recent regulatory actions by the Securities and Exchange Commission (SEC) have served to intensify this friction in the U.S. cryptocurrency market.

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2024-07-02 09:24