A source close to cryptocurrency exchange Binance has answered whether the company intends to file a lawsuit with the U.S. Securities and Exchange Commission (SEC), similar to what Coinbase is doing.
Cryptocurrency exchange Binance supports Coinbase's lawsuit against the US Securities and Exchange Commission (SEC), but does not currently plan to participate in the lawsuit, according to a source close to the company.
Binance Fears Adverse Effects If Coinbase Involves in SEC Lawsuit
Coinbase took legal action against the SEC today, asking a federal judge to compel the agency to share its response to Coinbase's July 2022 petition regarding whether its current securities regulatory processes could be extended to the crypto industry.
A source close to Binance, the world's largest crypto exchange by trading volume, said the company's leadership was "highly supportive" of Coinbase and its efforts to bring "logic and clarity" to US crypto regulations.
However, the source added that Binance is still dealing with the consequences of previous attacks by rival FTX that sought to portray Binance's CEO Changpeng Zhao as a Chinese communist and undermine his credibility in Washington DC.
The source said he feared that Binance's involvement in the lawsuit at this point could have "reverse effects" and preferred to focus on resolving its own regulatory issues in various regions around the world. Binance has faced increasing scrutiny and pressure from regulators in countries such as the UK, Japan, Germany and Singapore for its compliance and consumer protection practices.
*Not investment advice.