The market is reeling under panic and confusion as a result of Binance’s official response to the US SEC lawsuit, which stated that it would challenge the allegations.
The Securities and Exchange Commission (SEC) filed a complaint against Binance, the largest cryptocurrency exchange in the world, earlier today, which was the day’s greatest news. Binance has formally responded to the allegations and made an official statement on the current situation.
Binance Sought To Cooperate Before Filing A Lawsuit
Binance raised its disappointment with the U.S. Securities and Exchange Commission’s decision to file a lawsuit against the exchange, demanding immediate relief, in the statement. In response to the SEC’s earlier inquiries into the cryptocurrency exchange, Binance highlighted that it had swiftly sought to cooperate with the agency and discuss a settlement.
Though the SEC elected to pursue litigation by itself, Binance claimed that the agency’s complaint marked a shift from the cooperative procedure. The exchange claimed that the SEC chose enforcement and litigation over the deliberate, nuanced strategy that the dynamic, complicated nature of the technology demanded.
The Binance team was cited as responding to the SEC’s charges as follows:
Even though we take the SEC’s accusations seriously, they shouldn’t be the focus of an emergency enforcement action. We’ll fight back against any attacks on our platform.
The SEC’s complaint made it clear that one of Binance’s business practices put consumer assets in danger. Due to their flagrant contempt for federal securities laws and the safeguards they offer, the defendants “have enriched themselves by billions of dollars while placing investors’ assets at significant risk,” according to the complaint.
As Binance Challenges The SEC, Cryptocurrency Market Is Shaken
This development had a tremendous influence on the whole cryptocurrency market, with major cryptocurrencies witnessing a sharp decline. The price of Dogecoin, XRP, and Solana all dropped by more than 10% while Binance’s native cryptocurrency, BNB, had an 8% decline. Furthermore, Binance CEO Changpeng Zhao called the US watchdog’s case an attack on the whole cryptocurrency market.
Industry participants and watchers will pay careful attention to how the legal dispute between Binance and the SEC plays out since the conclusion might have a big impact on how exchanges and cryptocurrencies are regulated.
Binance concluded by saying that because the exchange is headquartered outside of the United States, the SEC’s measures are only partially effective. It is unclear how the SEC would approach enforcement and litigation, and whether Binance’s request for a more complex regulatory framework will be taken into consideration.