The U.S. arm of the global crypto exchange, Binance.US, is gearing up for the next phase of its legal battle with the Securities and Exchange Commission (SEC).
In a statement made on social media platform X, the company defended its legal position as it responded to allegations of securities law violations.
Binance.US said, “We have always utilized the limited guidance that the SEC has offered to the crypto industry to operate our business in a compliant way.”
Binance.US, established to serve U.S. clients legally, faced SEC legal action last June 2023, alleging violations in managing customer assets by Binance Holdings Ltd., BAM Trading Services, BAM Management U.S., and Changpeng Zhao.
Binance.US emphasized its commitment to customer safety, maintaining a 1:1 reserve for all customer assets, and having stringent compliance and risk management measures in place.
However, the company complained that the SEC has been adopting ‘regulation by enforcement,’ especially under the current Chairman, Gary Gensler.
Binance.US remains confident in its defense amid ongoing legal proceedings, asserting the SEC’s failure to produce evidence of wrongdoing. The company challenges the legal basis of the SEC’s action, calling its case factually and legally unfounded.
Binance.US said, “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.”
Binance.US insists it expects the Court to affirm its position in the future, emphasizing hope for a positive outcome, while reassuring users of continued normal operations and scheduled feature releases.
The ongoing legal conflict between Binance and its users underscores regulatory friction in the U.S. cryptocurrency market amid recent crackdowns by the SEC.
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