Binance.US responds to SEC lawsuit: SEC lacks evidence, vague regulations make compliance challenging

Facing a U.S. judge's ruling last Friday that advanced most of the U.S. Securities and Exchange Commission (SEC)'s allegations against Binance.US, the company also stated its position this morning, claiming that during the year-long litigation, the SEC did not find any evidence of illegal activity by Binance.US and emphasized that they are prepared for future litigation.

Preliminary: Judge Approves Most of SEC's Allegations Against Binance.US

A few days ago, U.S. Federal Judge Amy Jackson ruled to dismiss some of the SEC's lawsuits against Binance and its CEO Changpeng Zhao (CZ), but retained most of the allegations against Binance.US, including the company's offering of unregistered investment products and the violation of anti-fraud provisions by trading data provider BAM Trading.

Binance.US Faces Tough Time? Judge Approves Most of SEC's Allegations, Only BUSD and Earn Services Not Investment Contracts

The lawsuit dates back to June last year when the SEC sued Binance.US, Binance, and CZ for multiple violations of securities laws, with CZ currently serving time in prison due to charges from the U.S. Department of Justice and Treasury.

Binance.US: Ready to Fight Against SEC

In a public statement, Binance.US first expressed acceptance of the court's decision and "looks forward" to further developments in the case.

The company emphasized its compliance with U.S. regulations and commitment to ensuring platform security:

We are prepared for this and look forward to the progress of this case through the judicial process.

Binance.US also mentioned the SEC's vague and ambiguous rules regarding the crypto industry, stating that achieving compliance in the U.S. is extremely challenging:

We have been operating our business legally using the "limited guidance" provided by the SEC to the crypto industry. Unfortunately, like many companies in the industry, we have become victims of SEC's regulatory enforcement and overreach under the current leadership.

SEC Abandons ETH Investigation, Still to Sue MetaMask for Staking and Trading Functions

As the case moves into the final stage of evidence disclosure, Binance.US also criticized the SEC for not presenting any evidence of illegal activities by the company during the year-long litigation process:

Therefore, we remain confident that the SEC's case lacks both factual evidence and legal support; in other words, the authority sought by the SEC in suing us does not exist, and we believe the court will ultimately validate our position.

Cryptocurrency Companies Entangled in Lawsuits with SEC on the Rise

Meanwhile, other cryptocurrency companies currently embroiled in lawsuits with the SEC include Ethereum software provider Consensys, crypto payment company Ripple Labs, and U.S. exchange Coinbase.

SEC Sues Consensys, Targets MetaMask and Ethereum Staking Services: Lido, Rocket Pool Also Impacted

The lawsuit involving Kraken has also sparked controversy, with many officials and members of the crypto community criticizing the SEC for overstepping its bounds.

Dispute Arises from SEC's Lawsuit Against Kraken, Multiple State Officials Jointly Accuse SEC of Serious Overreach