Binance.US Files Motion to Respond to SEC’s Motion to Compel
Binance.US has submitted a motion in response to Magistrate Judge Zia M. Faruqui’s order regarding the U.S. Securities and Exchange Commission’s (SEC) motion to compel. The motion was filed on September 22 by BAM Management US Holdings and BAM Trading Services, the entities behind Binance.US. This is a strategic move to give Binance.US more time to properly address the SEC’s allegations. If approved, it would provide them with additional time to comply with the regulator’s demand for specific documents.
Binance.US Claims SEC Overreach
Binance Holdings Limited and CEO Changpeng “CZ” Zhao have expressed their belief that the SEC does not have the authority to make these claims. They argue that the allegations are based on unclear premises and that the SEC has not proven that crypto assets are securities.
Amidst the legal battle, Binance.US has experienced a significant decline in trading volume, dropping from $5 billion to $40 million due to regulatory pressure.
Key Dates Ahead for Binance
- October 23, 2023: Deadline for Binance to respond to the CFTC’s September 22 filing.
- November 7, 2023: The SEC will reply to Binance’s plea for dismissal.
In addition to the SEC lawsuit, the CFTC also filed a lawsuit against Binance in March, alleging that it offered unregistered derivatives products and lacked proper KYC or AML programs. The Department of Justice (DoJ) is also investigating Binance for allowing Russian customers access to its platform, potentially violating U.S. sanctions related to Russia’s actions in Ukraine.
If Binance is successful in its legal battles, it could lead to a more favorable regulatory environment. However, a loss could have a domino effect, triggering further regulatory actions against other cryptocurrency platforms.
Hot Take: The Implications of Binance’s Legal Battle
Binance’s ongoing legal battle with the SEC and other regulatory bodies has significant implications for the cryptocurrency industry. If Binance succeeds in proving that the SEC lacks authority and that crypto assets are not securities, it could set a precedent that benefits the entire industry. It would provide more clarity on regulations and potentially lead to a more accommodating environment for cryptocurrency platforms.
On the other hand, if Binance loses its legal battles, it could have far-reaching consequences. It may embolden regulators to take stricter actions against other platforms and impose more stringent regulations on the industry as a whole. The outcome of these lawsuits will undoubtedly shape the future of cryptocurrency regulation in the United States and beyond.
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