Despite the agreement reached with the US Department of Justice (DOJ), the situation is bitter for Binance. The Securities and Exchange Commission (SEC) continues its legal harassment against the company and its former manager, more determined than ever.
The SEC is being devious in its action against the crypto exchange Binance
The $4.3 billion deal that recently involved Binance, ex-CEO Changpeng Zhao and the DOJ is still in the news. This time, on the side of a third party to this agreement, namely the SEC, which seems to be pulling the strings to make the most of this development.
Indeed, despite this deal which was supposed to calm regulatory ardor against the crypto firm and its ex-manager, the SEC does not want to let go. The American financial regulator is blithely continuing its legal action against Binance and its founder.
But this time, by trying to take advantage of the fact that the latter pleaded guilty to reprehensible acts as a means to achieve his ends. The SEC argues that Binance’s admissions in the DOJ settlement should be considered in its case.
Binance and Changpeng Zhao requested a dismissal of the case. But the regulator urged the Washington federal court overseeing the SEC’s lawsuit to take the admissions into account. This, citing deception, conflicts of interest, lack of disclosure and violations of the law.
Binance regrets the legal harassment of the SEC
Following this observation, the crypto platform Binance underlined its commitment to cooperate with American financial regulators, including the SEC, obviously. But also the Commodity Futures Trading Commission (CFTC) which also launched proceedings against the exchange.
The latter nevertheless expressed his disappointment with the SEC’s preference for litigation rather than constructive resolution. Especially since the regulator’s legal action has important implications, the latter maintaining that most cryptos are securities. A status that would subject them to regulatory oversight similar to that in force for stocks.
For now, the outcome of this legal battle involving Binance and Changpeng Zhao is unclear. What is certain is that it will have an impact on the regulatory landscape of exchanges and the crypto industry in general.
As the SEC builds on the DOJ’s settlement of Binance to strengthen its case, the confrontation intensifies. A situation that highlights the growing regulatory challenges facing the crypto sector.
Maximize your Tremplin.io experience with our ‘Read to Earn’ program! For every article you read, earn points and access exclusive rewards. Sign up now and start earning benefits.
