Binance US Resolute in Legal Battle Against SEC

By: Isha Das

Binance.US, the American arm of the world's largest crypto exchange by trading volume, Binance, is gearing up for the continuation of its legal battle with the Securities and Exchange Commission (SEC). On July 1, the firm expressed readiness for the next stage of the proceedings shortly after a decision by the court to allow the SEC's case to advance.

The company's statement, promoted on their social media, read: "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."

Allegations from the SEC

The statement follows Binance.US's unsuccessful attempt to have the SEC’s claims, which are centered on various alleged securities law violations, dismissed. On June 28, US District Judge Amy Berman Jackson ruled that ten out of thirteen charges filed by the SEC against Binance could proceed. These charges related to the initial coin offering, ongoing sales of BNB, staking services, failure to register, and allegations of fraud. However, charges in connection to secondary BNB sales and the Simple Earn product were dismissed.

Response from Binance

Binance.US responded, stating that this outcome was anticipated and that they were prepared to continue defending themselves in court. The firm highlighted that, despite an 11-month period of discovery, the SEC has not yet found any concrete evidence of wrongdoing.

In their statement, Binance.US reaffirmed their stance: "We remain confident in our position that the SEC's case is unsupported by the facts or the law, and that the Commission lacks the very authority it is seeking to wield in bringing its action against us. We believe this position will be validated by the Court in due course."

Further emphasizing their compliance, Binance.US insisted that their operations had always adhered to local laws and highlighted their strong compliance and risk programs designed to ensure platform safety and security. Furthermore, the company stated that it had consistently followed the limited regulatory guidance provided to the emerging industry.

Concerns Over Regulatory Approach

Adding to its defense, Binance.US contended that the lawsuit is indicative of the SEC’s enforcement-oriented regulatory approach. They commented: "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."