Binance Announcement: Disappointed by SEC Lawsuit, Will Join U.S. Industry to Oppose SEC Overreach

Binance has responded to the complaint filed by the U.S. Securities and Exchange Commission (SEC), protesting against the SEC's enforcement approach to regulation.

Additional information: Coinbase also recently issued a similar protest against the SEC.

Learn more about the details of the SEC's lawsuit against Binance here.

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Disappointment with SEC Lawsuit Action

Binance expressed disappointment with the SEC's decision to file a complaint. Binance stated that they have been actively cooperating with the SEC from the start, endeavoring to address questions and concerns raised in the investigation. Recently, both parties engaged in extensive discussions in hopes of resolving the investigation through negotiation. However, the SEC abandoned this process in the complaint, choosing unilateral action and litigation, which left Binance frustrated.

Binance mentioned that while they take the SEC's allegations seriously, these allegations should not warrant enforcement action. Binance stated that they will vigorously defend their platform. Binance pointed out that the SEC's refusal to engage in meaningful cooperation is yet another misstep by the SEC, failing to provide clear guidance for the digital asset industry.

SEC Choosing Enforcement over Regulation Again

Binance noted that the SEC's choice to regulate through enforcement and litigation is not a comprehensive approach. Binance believes that unilaterally classifying certain tokens and services as securities, even when other U.S. regulatory bodies have claimed jurisdiction like the CFTC, will only exacerbate the issue.

SEC Actions Not Beneficial to U.S. Financial Innovation

Binance stated that the SEC's actions undermine the U.S.' role as a global leader in financial innovation. They pointed out that digital asset laws in many parts of the world are still inadequate, and relying on enforcement for regulation is not the optimal approach. Binance emphasized that an effective regulatory framework requires cooperation, transparency, and thoughtful policy engagement, which the SEC has abandoned.

No Issues with Binance.us User Assets

In response to allegations of misappropriating user assets in the lawsuit, Binance clarified that user assets on the Binance.us platform have never been at risk, deeming the SEC's actions baseless. Binance affirmed that all user assets on Binance and its related platforms, including Binance.us, are secure and reliable, and they will staunchly defend this. Binance noted that the SEC's actions seem geared towards wresting jurisdiction from other regulatory bodies like the CFTC, with investor protection not appearing to be the SEC's primary concern. Binance stated that due to its scale and global prominence, they have become an easy target in the U.S. regulatory tug-of-war.

SEC Seems to Be Making Headlines

Binance believes that the SEC's actions do not seem aimed at protecting investors, as if they were, the SEC would have engaged in thorough discussions with them regarding facts and the security of the Binance.us platform. Binance pointed out that the SEC's true intent appears to be generating headlines.

What's Next for Binance? Collaborating with U.S. Players

Binance stated that they will continue to collaborate with U.S. and global regulatory bodies and policymakers as it is the right thing to do. They hope to ensure that regulation fosters innovation while also safeguarding consumers.

Binance emphasized that as they are not a U.S. exchange, the SEC's scope of action is limited. However, they expressed readiness to stand with U.S. digital asset market participants against the SEC's overreach and are prepared to fight back vigorously. Binance stated that they will defend this crucial technology alongside industry partners, shielding it from the impact of misguided lawsuits. They will persist in providing a secure and trustworthy platform, upholding the core values of promoting financial freedom.