It has emerged that despite its $4.3 million deal with the US Department of Justice (DOJ), Binance is still under attack from the SEC. But clearly, Binance is not giving up. The exchange recently challenged, in a particularly virulent manner, the regulatory legitimacy of the financial regulator.
Binance rejects SEC’s jurisdiction to regulate crypto
In a recent article, we explained to you how the legal battle between the SEC and Binance is getting worse. In particular, because the American financial regulator intends to use the admission of guilt of CZ, the former CEO of Binance, for its benefit.
The case has undergone a new development. Indeed, the new management team of the crypto exchange seems to be taking a hawkish posture. This is evidenced by his point-blank rejection of the regulatory legitimacy of the SEC in matters of crypto.
Last week, in fact, the crypto firm, through its American subsidiary BAM Trading Services, sent a series of complaints to this effect. In particular, she accuses the SEC of adopting a “new and distorted interpretation” texts on securities.
A position which, according to its lawyers, places the regulator in a position allowing it to target certain crypto activities without right. Except that the latter do not fall within the regulatory scope recognized by American law.
Binance rejects legal basis for SEC accusations
The crypto company Binance did not just call into question the regulatory jurisdiction of the SEC by challenging it. His complaints attacked the arguments used by the regulator to sue the company.
Thus, the crypto firm disputed the argument that the crypto transactions it manages involve “investment contracts”. A reason which, according to Binance, does not hold because the SEC did not evaluate each transaction to determine whether or not such a contract existed.
Furthermore, Binance returned to the SEC’s clear intention to use its recent $4.3 billion settlement to achieve its ends. For the exchange, such an option is irrelevant. Precisely because the criminal charges of money laundering do not prove that the assets traded on its platform should be classified as securities.
Regardless, the conflict between the SEC and Binance, and more broadly crypto firms, seems to be intensifying. Binance, however, remains unwavering in its determination to challenge the SEC’s authority at every stage of the process. Proof of the importance of the regulatory issues that are being played out at the moment.
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