Binance.US has asked a federal judge to reject the US SEC’s request to freeze its assets, claiming that doing so would cause a pause to its operations.
Binance.US has urged a federal judge to reject the US SEC’s request to freeze assets on the cryptocurrency exchange as part of a legal dispute with the agency. According to Bloomberg, the US division of Binance has argued that freezing its assets would harm both its customers and its business.
“Operations Would Abruptly Grind To A Halt”
Operations will swiftly come to a halt if Binance is unable to pay its staff, vendors, associates, and professionals, as well as maintain the trading platform. In a court filing on Monday, US attorneys stated. The exchange continued, “With a freeze of all corporate assets, banking partners would most likely stop granting requests to transfer funds for any purpose, including customer redemptions.”
After filing a lawsuit against Binance entities and founder Changpeng Zhao last week, the SEC asked the federal court to confiscate assets of Binance.US on the grounds of “blatant disregard of US securities laws” and “years of violative conduct” that endangers consumer funds.
Binance Guarantees That US Client Assets Are Safe
Binance.US further asserted that US customer assets are secure, US attorneys wrote in their court filing that “there is no need for the draconian relief sought by the SEC.” As was previously reported, in an effort to safeguard client funds, including through the repatriation of client investments stored abroad, the US SEC has filed an emergency action application for a temporary restraining order to freeze Binance.US‘s assets. Binance has strongly refuted the accusations.
Proposed Bill Wants SEC Chair Fired
The “SEC Stabilization Act” was introduced into the House of Representatives on Monday by Republican representative Warren Davidson. The removal of Gary Gensler as SEC chair is one of the primary components of the bill. The bill would allocate power between the SEC chair and commissioner in addition to removing SEC head Gary Gensler. Republican lawmakers Warren Davidason and Tom Emmer both support cryptocurrencies, despite the fact that they did not expressly name them in their comments.