Binance Resists…!

It has emerged that despite its $4.3 million deal with the U.S. Department of Justice (DOJ), Binance is still facing attacks from the SEC. However, Binance is clearly not taking it lying down. The exchange has recently contested, in particularly vehement terms, the regulatory legitimacy of the financial regulator.

Binance Rejects SEC’s Competence to Regulate Crypto

In a recent article, we explained how the legal battle between the SEC and Binance was heating up. Notably, because the American financial regulator intends to use the guilty plea of CZ, Binance’s former CEO, to its advantage.

The case has seen a new development. Indeed, the crypto exchange’s new management team seems to be adopting a combative stance. This is evidenced by its outright rejection of the SEC’s regulatory legitimacy in crypto matters.

Last week in fact, the crypto firm, through its American subsidiary BAM Trading Services, filed a series of complaints to that effect. It notably accuses the SEC of adopting a “new and distorted interpretation” of securities law.

A position which, according to its lawyers, places the regulator in a stance enabling it to target certain crypto activities without right. Especially since these activities do not fall within the regulatory scope that American law recognizes for it.

Binance Fires Back Against SEC's Lawsuit, Questioning Regulator's Authority – Blockonomi https://t.co/4Us6XOQEzT

— 🛡️Moonboy🤑⚡️(💙,🧡)🛸(✨🔴_🔴✨)❤️memecoins 💛 (@McMoonboy) December 13, 2023

Binance Rejects the Legal Basis of SEC Accusations

The crypto company Binance has not only questioned the SEC’s regulatory competence but has also challenged the arguments the regulator has used to pursue the company legally.

For instance, the crypto firm has disputed the argument that the crypto transactions it manages involve “investment contracts.” A claim which, according to Binance, does not hold because the SEC has not evaluated each transaction to determine whether such a contract exists or not.

Moreover, Binance has revisited the SEC’s apparent intention to use its recent settlement of $4.3 billion to achieve its goals. For the exchange, such an option is irrelevant. Precisely because the criminal accusations of money laundering do not prove that the assets traded on its platform should be classified as securities.

Be that as it may, the conflict opposing the SEC to Binance, and more broadly to crypto firms, seems to be escalating. Nevertheless, Binance remains unyielding in its determination to contest the SEC’s authority at every stage of the proceedings. A testament to the importance of the regulatory issues currently at play.