In a significant legal showdown, Binance, the world’s largest cryptocurrency exchange, is set to go head-to-head with the US Securities and Exchange Commission (SEC) in a Washington courtroom.
The hearing, scheduled for Friday, marks the second high-profile legal battle this week involving the SEC and a top crypto exchange, following a similar case against Coinbase.
Binance Challenges SEC Lawsuit
According to a Reuters report, Binance intends to request a federal judge to dismiss the lawsuit filed by the SEC in June.
The regulatory body accused Binance, its former CEO Changpeng Zhao (CZ), and the operator of Binance.US of various infractions, including “artificially inflating” trading volumes, diverting customer funds, failure to restrict US customers, and misleading investors about market surveillance controls.
Additionally, the regulator alleges that Binance facilitated the trading of crypto tokens categorized as “securities” by the Securities and Exchange Commission. BAM Trading, the operator of Binance.US, has already argued in court filings that the SEC has failed to substantiate its fraud claims against Binance.
The exchange has contended that the SEC lacks the authority to regulate crypto assets, echoing the arguments made by Coinbase’s legal team during Wednesday’s hearing.
While Binance Holdings reached a $4.3 billion settlement last year with the US Department of Justice (DOJ) and the Commodity Futures Trading Commission (CFTC), the SEC’s lawsuit, which questions Binance’s core business model, remains unresolved.
Crypto Industry At Crossroads
Under the leadership of SEC Chair Gary Gensler, the regulatory focus has expanded from companies involved in token sales to encompass trading platforms, clearing activities, and broker-dealers.
Crypto companies have consistently challenged the SEC’s definition of securities, emphasizing the need for comprehensive legislation to regulate the industry effectively.
Notably, the hearing comes just days after Coinbase faced the SEC in court. However, Coinbase’s case revolves around allegations of operating as an unregistered securities exchange and does not involve fraud charges.
As the courtroom battle unfolds, the outcome of the exchange’s case against the SEC has significant implications for the crypto industry, potentially shaping regulatory approaches and setting precedents for future legal disputes.
The exchange’s native token, BNB, has experienced a significant recovery following a sharp decline in April 2023. This decline was further exacerbated on June 5th when the SEC initiated the lawsuit against Binance.
As of the time of writing, BNB has shown a 1% increase in value over the past 24 hours, trading at $315. Moreover, the token has exhibited a noteworthy 21.8% price gain over the last 30 days, leading to a cumulative recovery of 9% year-to-date.
Featured image from Shutterstock, chart from TradingView.com
You can get bonuses upto $100 FREE BONUS when you:
💰 Install these recommended apps:
💲 SocialGood - 100% Crypto Back on Everyday Shopping
💲 xPortal - The DeFi For The Next Billion
💲 CryptoTab Browser - Lightweight, fast, and ready to mine!
💰 Register on these recommended exchanges:
🟡 Binance🟡 Bitfinex🟡 Bitmart🟡 Bittrex🟡 Bitget
🟡 CoinEx🟡 Crypto.com🟡 Gate.io🟡 Huobi🟡 Kucoin.
Comments