- Binance has filed for a protective court order against the U.S. Securities and Exchange Commission (SEC) regarding the latter’s information requests.
- The crypto exchange states that the SEC’s demands are “over broad” and “unduly burdensome.”
Binance Responds to SEC’s Data Demands
Binance, a leading cryptocurrency exchange, has escalated its ongoing tussle with the U.S. Securities and Exchange Commission (SEC). Late on Monday, the exchange formally submitted a request for a protective court order in the US District Court of Columbia. The crux of the issue lies in what Binance describes as “over broad” and “unduly burdensome” information demands from the regulator.
The filing outlines that BAM Trading and BAM Management, which operate under the banner of Binance U.S., believe they have already furnished the SEC with ample information. Binance’s protective order looks to curtail the SEC’s scope, particularly its requests for a considerable number of depositions. Specifically, the crypto giant seeks to restrict the SEC to only four depositions from BAM personnel and explicitly requests that the regulator exclude both the CEO and CFO of BAM from these proceedings. Interestingly, the document stops short of naming these key executive figures.
Earlier in June, the regulatory landscape grew heated when U.S. authorities levied a lawsuit against Binance and its CEO, Changpeng Zhao. The core allegations encompassed a wide spectrum of charges – 13 in total. Among the more serious claims, the company was accused of grossly inflating its trading figures, misdirecting client funds, failing to block U.S. clientele from its primary platform, and providing misleading statements regarding its market oversight mechanisms.
However, Binance, in its recent filing, has pushed back against these charges, especially highlighting the absence of any tangible proof to suggest customer assets were mishandled or squandered.
Despite the exchange’s efforts to limit the extent of the SEC’s demands, the regulator appears unwavering. The filing underscores that the SEC has largely dismissed BAM’s attempts to narrow down its data requests and remains firmly against Binance’s move for a protective order. As of now, both Binance and the SEC have refrained from commenting further on the matter.