Binance.US is gearing up for another legal battle with the U.S. Securities and Exchange Commission (SEC). The platform asserts it operates within the confines of U.S. regulations.
Binance.US released a statement confirming the court’s decision to proceed with the SEC’s case against the exchange.
“We were prepared for this and look forward to having this case move forward in the judicial process,” Binance.US stated.
The Binance.US team emphasized its compliance with U.S. rules, using the SEC’s guidance available to the industry.
“We, like many companies in our industry, have fallen victim to the SEC’s regulation by enforcement approach,” the statement added.
Binance.US argues the SEC has failed to provide evidence of wrongdoing after an 11-month investigation, urging that the case must be lawfully justified.
“Our business is on strong footing, and our commitment to giving Americans access to digital assets remains unchanged. The fight continues,” the statement concluded.
U.S. Court Allows SEC to Continue Case Against Binance
On June 28, the U.S. court rejected Binance’s motion to dismiss the SEC case on most counts. Judge Amy Berman Jackson permitted the withdrawal of certain claims but allowed the investigation of others.
The SEC’s charges against former Binance CEO Changpeng Zhao remain, alleging he acted as a “controlling person” necessitating registration under the Exchange Act.
What the Experts Say
Attorney Scott Johnson described Judge Jackson’s ruling as a "big defeat" for the SEC, particularly regarding secondary sales.
Fox Business journalist Eleanor Terrett noted that the decision could bolster the legal positions of platforms like Coinbase, Kraken, and Consensys in their ongoing SEC litigations.
Binance’s Legal Proceedings with American Regulators
On June 5, 2023, the SEC filed a lawsuit against Binance and several affiliates, recognizing the BNB token and BUSD stablecoin as securities.
Binance announced intentions to defend itself, accusing the SEC of non-cooperation and lack of guidance to the digital assets sector.
In November 2023, Binance settled with the U.S. Department of Justice (DOJ) over sanctions violations, agreeing to pay $4.3 billion, with $50 million allocated personally to Zhao.
In December 2023, the SEC highlighted new evidence, asserting intentions to continue legal proceedings despite the DOJ settlement.
How the Lawsuit Against Binance Affected the Crypto Market
Legal issues have impacted Binance’s market position, with the cryptocurrency market remaining cautious. The SEC, led by Chairman Gary Gensler, insists that most digital assets are unregistered securities.
This lawsuit is part of a broader crackdown, and its outcome will have significant implications for Binance and the cryptocurrency industry at large.
