Binance.US Calls SEC Lawsuit “Baseless” and Expresses Disappointment

Binance.US Calls SEC Lawsuit “Baseless” and Expresses Disappointment

Binance.US, the American subsidiary of troubled cryptocurrency exchange Binance, has labeled the Securities and Exchange Commission’s (SEC) lawsuit against its platform as “baseless.” In a statement released on June 5th, Binance.US criticized the SEC’s regulatory approach towards the crypto industry, referring to it as “regulation-by-enforcement.”

The exchange argued that the SEC’s actions were aimed at near eradication of the cryptocurrency industry, citing similar actions taken against other platforms like Coinbase, Kraken, and Gemini. Binance.US expressed its intention to defend itself against the lawsuit and called upon Congress to pass bipartisan legislation that would establish a workable regulatory framework for digital assets.

Binance, the parent company, expressed disappointment with the SEC’s decision to file the lawsuit despite what it described as extensive discussions and cooperation during the SEC’s investigations. Binance criticized the SEC for failing to provide clarity and guidance to the digital asset industry and accused the regulator of using enforcement and litigation rather than a thoughtful approach.

The lawsuit was seen by Binance as an attempt by the SEC to claim jurisdictional ground from other regulators and not focused on investor protection. Binance also mentioned a previous lawsuit filed by the Commodity Futures Trading Commission (CFTC) in March over alleged regulatory commodity violations.

The size and global recognition of Binance made it a target in the ongoing regulatory battle in the United States, according to the statement. The exchange finds itself “caught in the middle of a U.S. regulatory tug-of-war.”