Binance.US has filed a motion to respond to Magistrate Judge Zia M. Faruqui’s order concerning 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 comes as a strategic countermove against the SEC’s claim that Binance.US has failed to cooperate in accordance with an earlier agreed consent order.
The essence of this legal maneuver is to buy Binance.US more time to respond to the SEC’s allegations properly. An approval would give them the much-needed time against the regulator’s motion to compel them to release specific documents.
Binance.US Claims SEC Overreach
Binance Holdings Limited and CEO Changpeng “CZ” Zhao have been vocal that the SEC lacks the authority to make these claims. They argue that the allegations are based on unclear premises and that the SEC has failed to prove that the crypto assets are indeed securities.
While the courtroom battles unfold, Binance.US’s trading volume has been severely impacted. The exchange saw its trading volume drop from $5 billion to $40 million amid this 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.
Initially, the CFTC filed a lawsuit against Binance in March. This case alleges that Binance offered unregistered derivatives products and failed to implement a robust KYC or AML program. In parallel, the SEC filed its lawsuit, focusing on Binance’s offering of investment products like “BNB Vault” and “Simple Earn” without proper registration.
The Department of Justice (DoJ) is also circling, accusing Binance of allowing Russian customers to access its platform, violating U.S. sanctions tied to Russia’s actions in Ukraine.
If Binance succeeds in its legal battles, it might pave the way for a more accommodating regulatory environment. However, a loss on either front could signify a domino effect, opening the floodgates for further regulatory action against other crypto platforms.
Qadir AK
Qadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.
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Elena is an expert in technical analysis and risk management in cryptocurrency market. She has 10+year experience in writing – accordingly she is avid journalists with a passion towards researching new insights coming into crypto erena.
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