Changpeng Zhao (CZ) & Binance Exchange filed a petition in the court to dismiss the suit, initiated by the American regulator against BinanceUS.
Binance is a global crypto exchange, known for highly secured crypto services. This year, the United States Securities and Exchange Commission (SEC) & the Commodities Futures Trading Commission (CFTC) sued BinanceUS over providing unregistered securities & commodities offerings and also running an unregistered national stock exchange.
On 21 Sep 2023, A court filing showed that Binance & its CEO Changpeng Zhao (CZ) filed a petition in the court and stated that the US SEC had overstepped its authority in the lawsuit against them.
Binance Holdings, the company behind the Binance crypto exchange, tried to explain that the SEC body attempts to gain power over the crypto sector which distorts the text of the securities laws.
Indirectly the filed petition noted that there are no laws in the Securities Act book that provide authority to the SEC agency to interfere in the crypto businesses.
On the same day, Binance’s American subsidiary BinanceUS filed a 56-page petition in the court to dismiss the case.
The US SEC sued Binance, BinanceUS, & CZ on 5 June of this year. Three months before the SEC’s suit, the CFTC agency sued Binance over providing unregistered Commodities offerings in the US jurisdiction, while the exchange was ordered not to provide services to the US. Later the CFTC chairman Rostin Behnam clarified the core of the suit and said that US citizens were using Binance’s crypto services unethically with the help of VPN services, which was Binance exchange’s fault.
Here Binance & BinanceUS are not only the crypto exchanges facing legal hurdles in the US but also huge numbers of crypto companies struggling badly. Currently American Coinbase crypto exchange & San Francisco headquartered blockchain firm Ripple (XRP) also standing strongly against the SEC’s charges to win the fight in the court.