- Binance alongside BinanceUS and CEO Changpeng Zhao have filed a motion to dismiss the SEC’s lawsuit, criticizing the securities violation claims as implausible.
- Amidst this legal scuffle, Binance.US has filed an additional motion post Magistrate Judge Faruqui’s directive, seeking extended time to respond to the SEC’s demands.
In the rapidly developing saga of legal confrontations between cryptocurrency exchanges and regulatory bodies, Binance, BinanceUS, and CEO Changpeng “CZ” Zhao are the latest to raise the banner of defiance. They’ve jointly motioned to dismiss the lawsuit initiated by the U.S. Securities and Exchange Commission (SEC), emphatically stating that the alleged securities violations lack merit. This motion is now underlaid by another move from Binance.US, as a reaction to a subsequent directive from Magistrate Judge Faruqui.
— Collin Brown (@CollinBrownXRP) September 23, 2023
Legal Parry and Thrust: Binance.US Seeks Breathing Room
According to the latest court documentation dated September 22, BAM Management US Holdings and BAM Trading Services, collectively referred to as BinanceUS, have lodged a motion for an extension of time. This action comes as a response to Magistrate Judge Zia M. Faruqui’s order, instructing the defendants to furnish justifications for sealing or redacting documents pertinent to the SEC’s motion to compel. Should this motion gain approval, Binance.US will acquire additional time to formulate a response to the SEC’s demands.
Furthermore, the documentation unveils the robust stance of Binance Holdings Limited and CEO Changpeng Zhao. They articulate a stark repudiation of the SEC’s authority, critiquing its allegations concerning securities violations as nebulous. The defendants are urging the court to dismiss all claims presented by the SEC. Their primary contention is the SEC’s failure to provide a plausible argument demonstrating any of the debated crypto assets qualify as securities.
A Regulatory Vise: Binance.US Faces Shrinking Trading Volume
Amidst this legal volley, the U.S. SEC has not held back in its offensive against Binance. Recent exhibit filings against Binance.US disclose an alleged lack of cooperation with an earlier consent order. On the flip side, Binance.US retorts that the SEC’s demands are “overbroad” and “unduly burdensome,” as stipulated in a protective order.
As the legal struggle intensifies, a significant fallout has been the plummeting trading volume of Binance.US, dropping starkly from $5 billion to a mere $40 million. This descending trajectory underscores the mounting pressures cryptocurrency exchanges face from regulatory authorities, each legal maneuver unfolding consequential ramifications not only for the entities involved but the broader crypto-financial landscape.