Binance responded to a complaint filed by the U.S. Securities and Exchange Commission (SEC), protesting the SEC’s use of enforcement instead of regulation.
(Additional information: Coinbase also issued a similar protest to the SEC a while ago)
Disappointed with SEC action
Binance said it was disappointed that the SEC chose to file a complaint. Binance stated that from the beginning, they have been actively cooperating with the SEC and working hard to answer questions and concerns in the investigation. There have been numerous discussions recently between the two parties with the hope of resolving the investigation through a negotiated settlement. However, the SEC abandoned the process amid the complaint, opting to act unilaterally and litigate, much to Binance’s dismay.
Binance said that while they take the SEC’s charges seriously, they should not become enforcement actions. Binance stated that they will defend their platform vigorously. Binance pointed out that the SEC’s refusal to engage in meaningful cooperation with them is just another wrong demonstration by the SEC and does not bring clear guidance and guidance to the digital asset industry.
SEC once again replaces regulation with enforcement
Binance pointed out that the SEC chose to use enforcement and litigation to regulate, but it was not a comprehensive approach. Binance believes that unilaterally treating certain tokens and services as securities even when other U.S. regulators have asserted jurisdiction (meaning the CFTC) will only exacerbate the problem.
SEC action won’t help U.S. financial innovation
Binance said the SEC’s action undermines the United States’ role as a global financial innovation and leader. They pointed out that digital asset laws in many parts of the world are still incomplete, and relying on law enforcement to regulate is not the best way. Binance emphasized that an effective regulatory framework requires cooperation, transparency, and thoughtful policy engagement, while the SEC has abandoned such a path.
There is no problem with Binance.us user assets
Due to the lawsuit accusing Binance of misappropriating user assets, Binance responded that user assets on the Binance.us platform have never been at risk and stated that the SEC’s actions were unfounded. Binance and its associated platforms, including Binance.us, believe that all user assets are safe and secure, and they will vigorously defend this. Binance pointed out that the SEC’s actions appear to be aimed at wresting jurisdiction from other regulatory agencies (meaning the CFTC), and investors do not appear to be the SEC’s primary concern. Binance said it was an easy target in the U.S. regulatory battle because of its size and global popularity.
The SEC is here to make news.
Binance believes that the SEC does not appear to be protecting investors, and if this is the case, the SEC will have in-depth discussions with them on the facts and the security of the Binance.us platform. Binance pointed out that the SEC’s real intention appears to be to create headlines.
What’s next for Binance? Join forces with American industry
Binance stated that they will continue to work with regulators and policymakers in the United States and globally because it is the right thing to do. They want to ensure regulation promotes innovation while also protecting consumers.
Binance emphasized that since they are not a U.S. exchange, the scope of the SEC’s action is limited. However, they stated that they would stand together with U.S. digital asset market participants, oppose the SEC’s excessive interference, and are ready to fight with all their strength. Binance stated that they will work with industry partners to defend this important technology from wrongful lawsuits. They will continue to work tirelessly to provide a safe and trustworthy platform, adhering to their core values of promoting monetary freedom.
This article Binance Announcement: Disappointed with the SEC’s litigation actions, will unite American industry players to oppose excessive SEC interference. First appeared on Chain News ABMedia.