In a blog post on Binance, the trading platform’s management expressed disappointment over the recent lawsuit, in which the regulator also listed a number of crypto-assets as unregistered securities. Binance reported that it has been actively cooperating with the SEC from the beginning and has been open to interacting with the regulator. The management of the exchange stressed that it takes seriously the allegations of the SEC, but intends to defend the interests of the platform.
“The SEC complaint undid all efforts to create a constructive dialogue with the regulator and proved that the SEC only intends to act unilaterally and prefers to sue. We are disappointed with this choice. By doing so, the SEC is refusing to bring clarity to the rules governing digital assets,” said Binance.
The exchange said the SEC has taken an ill-advised approach by trying to apply enforcement measures to cryptocurrency companies, while the fast-moving latest technologies require detailed scrutiny. “One-sided” designation of certain crypto-assets as securities only exacerbates this problem.
“The SEC’s actions undermine the U.S. role as a global center for financial innovation. Most countries do not yet have digital asset laws, and litigation is not the best way. Effective creation of regulatory framework for cryptocurrencies requires coordinated work and transparency. However, the SEC is unwilling to go down that path,” Binance said in its response.
Binance clarified: Any claim that user assets on the Binance.US platform have ever been at risk is incorrect. All user assets on Binance and its partner platforms are safe, exchange management said. As Binance put it, protecting investors has never been a priority for the SEC, which is only trying to get into media headlines.
Given that Binance is not a U.S. exchange, the SEC’s actions against it are limited. Nevertheless, Binance has said it will continue to work with both U.S. regulators and policymakers, as well as international agencies. The exchange will also bring in industry partners to protect the crypto industry from unwarranted SEC lawsuits.
As a reminder, Binance recently asked the Ontario Securities Commission (OSC) to stop investigating itself, as the exchange has already left the Canadian market.