On September 21, the company submitted a 60-page petition saying that the financial regulator exceeded its authority when it sued them.
The SEC sued Binance in June, accusing it of a variety of misdemeanors, including mishandling customer funds, misleading investors and regulators, and violating securities rules.
Binance and CZ accused the SEC of “attempting to impose sanctions retroactively, before it has given any public guidance about cryptocurrencies,” according to Bloomberg.
Binance Boss Bites Back
According to the court filing, Binance’s lawyers wrote:
“In an attempt to gain regulatory power over the crypto industry, the SEC is twisting the text of securities laws.”
The SEC also intends to “expand its jurisdiction worldwide to include transactions on foreign cryptocurrency platforms,” it reads.
A separate filing seeks to dismiss the case against Binance.US, which is legally known as BAM Trading Services. The US division of the world’s largest crypto exchange has been virtually eliminated in that move, which was probably the original goal of SEC chair Gary Gensler.
However, Binance scored a small victory against the regulator earlier this week.
On Sept. 19, the SEC failed to convince a federal judge to immediately allow its officials to examine the Binance.US software.
The magistrate judge said he was not “inclined to allow inspection at this time.” He said the SEC should make more tailored requests and talk to more witnesses.
Attorney Jeremy Hogan sees the irony in what happened to Binance this year. The company was sued by the Commodity Futures Trading Commission (CFTC) and the SEC.
One agency says that Binance stablecoin BUSD is a commodity and another claims that it is a security. Hogan commented on the premise of another lawsuit slapped on the company:
“Now, if FinCen files and says BUSD is a currency, Binance will have achieved the Holy Trifecta!”
Did you know that the CFTC sued Binance in March, claiming that BUSD is a commodity?
And then, 3 months later, the SEC sued Binance, saying that BUSD is a security?
Now, if FinCen files and says that BUSD is a currency, Binance has achieved the Holy Trifecta! SMH. https://t.co/WevWtWvMpi pic.twitter.com/b7ioB9qCB7
— Jeremy Hogan (@attorneyjeremy1) September 22, 2023
Binance’s native token, BNB, remains on shaky ground, falling 1.5% on the day. As a result, BNB is trading at $211 at the time of writing.
In addition, the asset is down 31% since the SEC’s case in June. It is now down nearly 70% from its all-time high of $686 in May 2021.
Notably, BNB has outperformed many DeFi tokens, having been crushed by 90% in this bear market.
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