Leading cryptocurrency exchange Binance remains on the agenda as it enters into a legal battle with the SEC. Since the stock market is on the agenda, the CEO’s statements are also on the agenda. The CEO and co-founder of the exchange, Changpeng Zhao (CZ), is taking a stand against the US Securities and Exchange Commission (SEC). He submitted a 60-page petition to the court requesting the dismissal of the SEC’s lawsuit against them.
Binance CEO’s claim that SEC overreached
In the comprehensive petition, Binance and CZ accuse the SEC of overstepping its authority by targeting them. They specifically highlight the SEC’s recent actions that warranted impeachment. The crux of their argument lies in the claim that the SEC retroactively applied the rules against them. They argue that the SEC has in the past imposed penalties for actions not subject to public guidance.
Legal representatives of Binance and CZ also claim that the SEC is deliberately blurring the boundaries of securities law text to establish dominance over the cryptocurrency industry. This claim is at the center of their defense. Allegedly, the SEC is overstepping its authority. Moreover, he intervenes in an area in which he has no interest.
Binance.US joins the fray
Binance’s US arm, Binance.US, also independently filed a petition against the SEC. Their filing mirrors claims made by Binance Holdings and CZ. Binance.US, like its parent company, is petitioning the court to dismiss the SEC’s lawsuit.
This legal challenge comes amid an ongoing regulatory storm surrounding Binance.US, Binance Holdings and CZ. These organizations faced numerous allegations from regulators throughout the year. Specifically, the SEC accused Binance of mishandling customer funds, misleading investors, offering unregistered securities, and more. On the other hand, it should be noted that the stock exchange and CZ constantly deny these claims.
Latest legal hurdles for the SEC
In a recent case for the SEC, the court denied a request for an inspection order against Binance. Prior to this, the regulator had criticized Binance.US for not cooperating during the ongoing investigation. When we look at it as Kriptokoin.com, all these developments point to difficulties in the midst of market turbulence.
The legal battle adds to the challenges facing the Binance exchange. On the other hand, market performance is also significantly negatively affected. Accordingly, the market share of the stock market is decreasing. There are also negative emotions fueled by fear, uncertainty, and doubt (FUD). Accordingly, the situation is getting worse with the recent layoffs and departures of key executives. As the legal conflict unfolds, the crypto community is watching the situation closely. He is also awaiting the outcome and its potential impact on the industry overall.
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