Binance US is gearing up for a legal battle against the Securities and Exchange Commission (SEC) after the District Court for the District of Columbia ruled that the SEC case will proceed. The exchange remains confident in its case after Judge Amy Berman Jackson dismissed several “significant claims” in the case.
Binance Prepares for Legal Battle
The American branch of crypto exchange Binance is preparing to face the SEC as the battle for control continues. In the X post, the exchange informed users that the Court has decided that the SEC case should proceed.
As mentioned in the post, Binance US was established to serve US customers and strictly comply with the country’s laws and licensing. It maintains “1:1 backups of all customer assets” and has strict compliance and risk programs to “ensure the safety, security, and integrity” of the platform.
Binance US releases public statement. source: Binance.US on X
The exchange criticized the SEC’s “coercive regulation” and “excessive” political decisions, a common criticism that political and industry figures have voiced. Binance US emphasized the “limited guidance” the SEC has given the industry to operate and comply with regulations.
In addition, the crypto trading platform said that the US regulator has not seen “any evidence of wrongdoing” from the US branch throughout the extensive, 11-month acquisition process in which Binance participated.
However, the exchange has confirmed that it is ready for a legal dispute and is looking forward to moving forward in the judicial process. It said it is confident in its position and believes that the Court will confirm it later:
We remain confident in our position that the SEC’s case is not supported by fact or law, and that the Commission does not have the very authority it seeks to exercise in bringing its actions against us. We believe that this position will be confirmed by the Court in due course.
Partial Victory For Crypto Exchange
In June 2023, the SEC filed a lawsuit against the crypto exchange, arguing that Binance US offered unregistered securities sales and operated illegally in the US. The negotiations included a motion to dismiss the case, arguing that the US regulator exceeded its legal authority.
On Friday, Judge Amy Berman Jackson ruled against the exchange’s attempt to dismiss most of the SEC’s claims. However, Binance saw a partial victory after Judge Jackson rejected some of the regulator’s main claims.
According to the post, the main takeaway from the exchange is the dismissal of “primary claims,” including claims related to the secondary market sale of BNB tokens, the classification of the Binance USD (BUSD) stablecoin as an investment contract, and “the assertion that crypto tokens themselves are securities.”
The exchange views the Court’s decision as “a contribution to the SEC’s ongoing regulatory enforcement efforts.” Furthermore, the decision marks an important moment in the ongoing battle between regulators and the crypto industry.
This decision is more than just a legal win for Binance; recognizes that there are significant limitations to the SEC’s regulatory authority over the crypto industry. The court rightly criticized the SEC’s decision to prosecute a multibillion-dollar industry by using a “case-by-case, coin-by-coin, court-by-court” approach, which creates inconsistent and ambiguous results.
However, Judge Jackson allowed the lawsuit to proceed with claims related to the exchange’s program, BNB’s Initial Coin Offering (ICO), and violations of the Anti-Fraud Act.
Binance Coin (BNB) is trading at $579.4 in the five-day chart. Source: BNBUSDT on TradingView
Featured image from Unsplash.com, Chart from TradingView.com
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