Binance.US said that it is prepared to defend itself against the US Securities and Exchange Commission after a court ruled that the regulatory agency’s case against the crypto exchange could continue.
In its official statement on X, the US arm of crypto giant Binance affirmed that the “fight continues.”
Binance.US Slams SEC’s Enforcement Tactics
The crypto exchange said that it has used the “limited guidance” that the SEC has offered to the crypto industry to operate its business in a compliant way. Binance.US also slammed the SEC’s regulation-by-enforcement strategy and accused the regulatory body of politically motivated overreach under its current leadership.
The company also said that it maintains 1:1 reserves for all customer assets and has strong compliance and risk programs that ensure the safety and security of its platform.
“We remain confident in our position that the SEC’s case is unsupported by the facts or the law and that the Commission lacks the very authority it is seeking to wield in bringing its action against us. We believe this position will be validated by the Court in due course.”
Binance.US vs SEC
Last June, the SEC filed a lawsuit against Binance Holdings Ltd., BAM Trading Services, BAM Management US, and founder Changpeng “CZ” Zhao, accusing them of violating the US securities laws.
The securities watchdog also alleged that employees of the global Binance entity outside the US could improperly access and control Binance.US customer assets. Binance.US, on the other hand, maintained that the SEC has yet to identify any evidence of wrongdoing on the part of the exchange throughout the extensive, 11-month discovery process.
In September, Binance contested the SEC’s claim and requested the dismissal of the case, arguing that the latter was overreaching its jurisdiction to foreign crypto transactions. However, Judge Army Berman Jackson of the US District Court for the District of Columbia ruled that the majority of the SEC’s lawsuit could proceed. Out of 13 counts, 10 will fully proceed, two will partially proceed, and one will be dismissed.