Binance Slams SEC’s Enforcement Approach, Highlights Threat to Financial Innovation
In Brief
Binance has issued a response to the SEC lawsuit.
The crypto exchange says that it has been engaging in good-faith discussions with the SEC to resolve the investigations.
Binance alleges that the SEC’s actions “undermine America’s role as a global hub for financial innovation and leadership.”
Binance has issued a response to the SEC complaint filed against the crypto exchange on Monday. The complaint accused the crypto exchange of providing unregistered trading platforms for crypto asset securities and putting “the safety of billions of dollars of U.S. investor capital at risk.”
In Binance’s official statement, the crypto exchange hit back at SEC, saying that the federal agency filed the lawsuit unilaterally to define the crypto market structure on an emergency basis. Binance claims that it has been engaging in good-faith discussions with the SEC to resolve the investigations, but the SEC refused to productively engage with the platform.
Binance criticized the regulatory body’s enforcement and litigation tactics, arguing for a more thoughtful and nuanced approach towards the dynamic and complex technology of cryptocurrencies.
The crypto exchange said that the SEC’s move to label certain tokens and services as securities unilaterally, even in cases where other U.S. authorities have claimed jurisdiction, exacerbates the existing challenges in the crypto space and fails to address the need for a comprehensive regulatory framework.
According to Binance, SEC’s actions could potentially undermine America’s position as a global leader in financial innovation. With digital asset regulations still underdeveloped in many parts of the world, Binance argues that relying on regulation by enforcement is not the best way forward. Instead, the exchange asserts that an effective regulatory framework should be characterized by collaborative, transparent, and thoughtful policy engagement – a path it believes the SEC has abandoned.
Binance further emphasized that allegations regarding the safety of user assets on the Binance.US platform are unequivocally false. The exchange assured that all user assets, including those on Binance and its affiliate platforms, are secure and that there is no justification for the SEC’s actions, given the ample time the Commission had for its investigation. Binance vowed to defend itself vigorously against any allegations to the contrary.
“It seems based on these developments that the SEC’s goal here was never to protect investors; if that were truly the case, the Staff would have thoughtfully engaged with us on the facts and in our efforts to demonstrate the safety and security of the Binance.US platform. The SEC’s real intent here, instead, appears to be to make headlines,”
Binance said in a statement.
Binance said that it will continue to cooperate with regulators in the U.S. and around the globe.
The recent lawsuit filed against Binance has caused a stir on Crypto Twitter, with SEC Chair Gary Gensler’s tweet on the matter drawing strong reactions from users. Many users expressed their dissent by responding to Gensler’s tweet with a barrage of clown memes and emojis.
Some Twitter users pointed out that Gensler “shilled” Algorand in 2019 and those who bought ALGO at $2.30 then have since lost 94% of their investments.
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About The Author
Cindy is a journalist at Metaverse Post, covering topics related to web3, NFT, metaverse and AI, with a focus on interviews with Web3 industry players. She has spoken to over 30 C-level execs and counting, bringing their valuable insights to readers. Originally from Singapore, Cindy is now based in Tbilisi, Georgia. She holds a Bachelor's degree in Communications & Media Studies from the University of South Australia and has a decade of experience in journalism and writing. Get in touch with her via cindy@mpost.io with press pitches, announcements and interview opportunities.
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Cindy is a journalist at Metaverse Post, covering topics related to web3, NFT, metaverse and AI, with a focus on interviews with Web3 industry players. She has spoken to over 30 C-level execs and counting, bringing their valuable insights to readers. Originally from Singapore, Cindy is now based in Tbilisi, Georgia. She holds a Bachelor's degree in Communications & Media Studies from the University of South Australia and has a decade of experience in journalism and writing. Get in touch with her via cindy@mpost.io with press pitches, announcements and interview opportunities.
