The BinanceUS’s team filed a document in the court against the SEC’s allegations, initiated by the SEC agency around a week ago.
BinanceUS is an independent subsidiary of the Binance crypto exchange. The services of this exchange are available in the US jurisdiction only, to comply with American regulatory bodies. A week ago, the United States Securities Exchange Commission (SEC) sued Binance, BinanceUS, & Binance CEO Changpeng Zhao (CZ) over unregistered securities offerings.
On 12 June 2023, BinanceUS filed a document in court in response to the SEC’s charges and stated that all the SEC’s allegations are invalid.
The first & main thing which the BinanceUS filing pointed out is that the SEC body wants to freeze all the exchange’s funds (crypto & bank money).
According to Binance’s affiliated exchange, the SEC’s intentions & plans will result in a very bad outcome for the company because in that situation BinanceUS will not be able to operate its business as well as it will fail to defend against the lawsuit action.
According to BinanceUS, this exchange always followed all the securities laws ensuring that its services were not violating any kind of securities Act since the establishment of BinanceUS.
“The SEC suggests that it is a foregone conclusion that cryptocurrency is a security, but that is not the case. That numerous cryptocurrency exchanges, including BAM, have operated in the United States for years without interference by the SEC belies the claim that they are covered by the securities laws,” court filing read.
Furthermore, BinanceUS asserted that the SEC’s charges are only a misunderstanding & misconception and it is their mistake that customers funds on the exchange are not safe.
Recently a popular British professor Carol Alexander said that she doesn’t think that the SEC agency can score a regulatory win against BinanceUS. She noted that the SEC body is struggling badly since Dec 2020 to win against San Francisco headquartered blockchain firm Ripple. According to the professor, the financial position of these crypto firms is very strong over the SEC agency, so here the SEC is weak.
Just a day ago, the BinanceUS legal team hired George Canellos to defend the exchange against SEC’s charges. George is one of the four lawyers from Milbank LLP, hired by the exchange. In the past he already worked as a co-director of the SEC’s enforcement division, so it is obvious that he will catch some weak points of the SEC body easily.