Many crypto exchanges including Binance believe that the SEC’s requested relief will do more harm to investors than good.
The United States arm of the Binance exchange, Binance.US has responded to the lawsuit filed against it by the Securities and Exchange Commission (SEC).
According to Binance.US, the lawsuit is without any basis and therefore, the exchange is ready to go to court to refute all of the unwarranted accusations. In light of facts, the law at the time, as well as the SEC’s precedents, the exchange believes that the regulator’s complaint is unjustified.
At the same time, Binance claimed to be aware of the undue stress that the crypto market had been under following a rising trend of regulatory actions against crypto exchanges, hence the need to address it now.
The trading platform noted the series of lawsuits that the US regulator has filed against the likes of Coinbase Global Inc (NASDAQ: COIN), Gemini, and Kraken and after considering many of them including its recent indictment, the exchange concluded that the SEC may very well be restricting the digital assets industry.
At the same time, Binance.US says it is open to reaching a constructive compromise with the regulator, provided that Binance customers and their crypto assets are protected. Furthermore, the exchange reminded the public that it is one of the few exchanges that have been working tirelessly with the SEC for more than two years to ensure that a clear and realistic regulatory framework is upheld.
Many crypto exchanges including Binance opine that the SEC’s requested relief will do more harm to investors than good.
Precisely, it is presumed that investors will begin to seek a haven for their enterprises outside America seeing that the region is suffocating and stifling their mission to thrive. Conclusively, Binance.US is calling on the intervention of Congress in establishing bipartisan legislation for a sustainable and practicable crypto regulatory framework.
Without this bipartisan legislation, the US risks jeopardizing its position as a pioneer and innovator in the field of cryptocurrencies.
The SEC Lawsuit against Binance and Coinbase
On Monday, the SEC sued Binance.US and its parent company in a U.S. federal court in Washington DC for violating securities laws. In addition, the SEC called out the exchange for mishandling investor funds as well as misleading investors and regulators. The SEC also accused the crypto exchange of flouting Know-Your-Customers (KYC) rules by letting Americans trade in an unsecured and unprotected environment.
“We allege that Zhao and the Binance entities not only knew the rules of the road, but they also consciously chose to evade them and put their customers and investors at risk – all in an effort to maximize their own profits,” Gurbir S. Grewal, Director of the SEC’s Division of Enforcement started in the filing.
This enforcement action, as well as the related lawsuit slammed against Coinbase caused the price of several crypto-linked assets including Coinbase shares to fall significantly.
Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.
