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According to Binance, they were taken by surprise by the SEC’s unilateral decision as the company was engaged in discussions with regulators to reach a negotiated agreement that would resolve the ongoing investigations.
However, the regulators chose to close those doors and proceed with legal actions. Binance considers this tactic “regrettable” given their collaborative efforts.
Binance vs. SEC: A Battle For The Future of The Crypto Industry
Binance indicated that despite the SEC’s limited jurisdiction over them as a non-U.S. exchange, they are ready to vigorously defend their platform and protect the interests of their users. Binance believes that the accusations brought forth by the SEC, under the guise of “emergency,” lack justification.
“Because Binance is not a U.S. exchange, the SEC’s actions are limited in reach. Still, we stand with digital asset market participants in the U.S., opposing the SEC’s latest overreach, and we are fully prepared to fight it within the boundaries of the law.”
Furthermore, Binance has highlighted the lack of clarity and guidance within the U.S. regulatory environment for cryptocurrencies. They argue that this situation is hindering the country’s role as a global technological center by impeding progress and sector development.
Binance has emphasized that all user assets on their platforms, including Binance.US, remain secure and protected. They categorically refute any claims suggesting otherwise. These reassurances come in response to recent allegations published by Reuters, indicating that Binance commingled client funds with company revenue, thereby violating U.S. financial regulations.
Hoskinson Warns of SEC’s Accusation For State-controlled CBDC
Charles Hoskinson, founder of Cardano and co-founder of Ethereum, indicated that the SEC’s accusation “seems like the next step in a series of measures to implement chokepoint 2.0 in the United States.” The ultimate goal, according to Hoskinson, is the launch of a state-controlled central bank digital currency (CBDC).
He further added that although this situation is not entirely unprecedented, it presents a perfect opportunity for the “fragmented” crypto industry to unite and confront regulators. Their aim is to prevent the country from falling into a dystopian state that would make the 1984 banking crisis look like a vacation.