A few hours ago, Binance and Binance CEO Changpeng Zhao were sued by the SEC for violating US securities rules.
Binance US said the case was "the latest example of sanctioned regulation by the current SEC administration" and was "unfounded" and "not justified by facts, law or the Commission's own precedent".
The company claimed it has worked in good faith with the SEC for nearly two and a half years and aims to work constructively for a clear, practical regulatory framework that allows businesses like theirs to grow, create jobs, and provide American consumers with secure access to digital assets.
The company also said the SEC's action would hurt the investors the agency was charged with protecting, hinder innovation, and penalize its companies and industries rather than work to allow American businesses to thrive. Binance US has urged Congress to pass bipartisan legislation that establishes a viable regulatory regime for digital assets and reins in the bureaucratic extremism their industries are victims of.
Today, the SEC filed civil claims against https://t.co/AZwoBOgsqS in what is the latest example of regulation by enforcement under the current Commission. To be clear, we believe the lawsuit is baseless and we intend to defend ourselves vigorously. However, we want to address…
— Binance.US 🇺🇸 (@BinanceUS) June 5, 2023
The company also said that it is open to compromise:
“While we are open to fruitful reconciliation that protects our customers and their digital assets, with this latest action taken against our business and similar actions taken against Coinbase, Gemini, Kraken and other market participants, the SEC wants our industry to be virtually eliminated.”
*Not investment advice.
