According to Binance, the SEC’s actions undermine the role of the US as a hub of innovation.
Binance said that despite the lawsuit, they will continue to cooperate with US regulators.
The bitcoin (BTC) and cryptocurrency exchange Binance responded to the formal accusation made by the United States Securities and Exchange Commission (SEC) on June 5. The company maintains that it will defend itself “vigorously” and criticized that the regulator’s actions “undermine the role of the US as a global center for financial innovation.”
In a releaseissued minutes after the SEC’s formal lawsuit was filed, the company run by Chinese-Canadian businessman Chanpeng Zhao, expressed disappointment at the regulator’s accusation.
According to Binance, have worked “hard” to answer SEC questions and concerns. In fact, the company came to engage in “extensive good faith discussions to reach a negotiated agreement.”
“But despite our efforts, with your complaint today, the SEC abandoned that process and instead chose to act unilaterally and litigate. We are discouraged by that choice,” Binance noted.
In that sense, the cryptocurrency firm said that the SEC’s action is another example of how the commission “has determined to regulate with the blunt weapons of enforcement and litigation rather than the thoughtful and nuanced approach demanded by this dynamic and complex technology.”
“Unilaterally labeling certain tokens and services as securities, even those over which other US authorities have asserted jurisdiction, only exacerbates these problems,” the exchange states.
SEC Actions Undermine America’s Role
For Binance, “the most surprising thing is that the actions of the SEC undermine the role of the United States as a global center for financial innovation and leadership.”
“Regulation through the application of regulations is not the best way to go (…) an effective regulatory framework requires a collaborative, transparent and thoughtful political commitment, a path that the SEC has abandoned”, the company specifies.
Binance also highlighted that “any claim that user assets on the platform have been at risk is simply wrong.” Furthermore, she said that “There is no justification for the SEC’s action in light of the ample time they have had to conduct their investigation.”
“All user assets on Binance and Binance affiliated platforms, including Binance.US, are safe and secure, and we will vigorously defend against any claims to the contrary,” the exchange insisted.
The company also commented that the SEC’s actions “appear to serve an effort to rush to claim jurisdictional ground from other regulators.” “And investors don’t seem to be the SEC’s priority.” Indian.
“It appears on the basis of these developments that the SEC’s goal here was never to protect investors; if that were indeed the case, the Commission would have carefully engaged us in the facts and in our efforts to demonstrate the security of the Binance.US platform. The SEC’s real intent here, instead, appears to be to make headlines.”
Binance, bitcoin and cryptocurrency exchange.
Binance said in its statement that despite the lawsuitwill continue to cooperate with regulators in the US and around the world “because that’s the right thing to do.” However, they clarify that because Binance is not a US exchange, “the SEC’s actions are limited in scope.”
“Still, we stand with US digital asset market participants in opposing the latest SEC overreach, and we stand prepared to fight it to the fullest extent of the law,” Binance insisted.
SEC indicted Binance and Chanpeng Zhao on 13 counts
As stated, Binance’s response came minutes after the SEC’s lawsuit against the cryptocurrency company was reported. As CriptoNoticias reported earlier, the regulator maintains that Binance violated the federal securities laws of the United States.
Overall, the SEC charged Binance with 13 counts. In fact, the president of the organization, Gary Gensler, affirmed that the entities of Zhao and Binance “engaged in an extensive web of deception, conflicts of interest, non-disclosure, and calculated evasion of the law.”