After Coinbase, Binance US Files Motion In Response To SEC Deal

In the latest move, Binance is not ready to bow down to SEC allegations. Hence BinanceUS, a part of the big crypto giant Binance in the US, has asked for extra time to share its financial information with the US SEC (Securities and Exchange Commission). This is connected to an earlier agreement between Binance and Binance.US to keep their operations separate and provide detailed financial reports to the government. 

Clouds of Uncertainty Looming on Binance

Recently Binance.US officially revealed that it wants more time to give the SEC accurate financial details. This request was made in a court filing in the District Court for the District of Columbia.

However, a court order from Judge Amy Jackson in June said that BAM Management US Holdings and BAM Trading Services need to give the SEC a comprehensive financial statement. This statement should include expenses and costs from December 1, 2022, until the present. 

What are the Reasons Behind the Move? 

It seems the crypto giant is on a defence move, similar to its other legal cases. Binance thinks that the regulatory actions taken in the US are mainly targeting it and its entities. It’s also getting harder for accounting firms to work with crypto companies because regulators are keeping a close watch, especially after the FTX issue.

Notably, as per reports the recent agreement will make sure only Binance.US staff can access customer funds on the US platform. Binance Global officials can’t access private keys or internal systems of Binance.US within 14 days.

Drawing Parallels Between Binance Lawsuit and Ripple Ruling

It is worth noting that, a recent court decision involving US SEC v. Ripple Labs has significant implications for the Binance case. Alike Coinbase, another big crypto exchange, is also looking to get the SEC’s lawsuit dismissed, which is quite similar to the one against Binance.

On the contrary, Binance has asked for the dismissal of a lawsuit from the US CFTC (Commodity Futures Trading Commission), arguing that it shouldn’t have authority over a global crypto exchange. The CFTC needs to respond by September 22. 

While Judge Jackson seems to be considering the Ripple ruling made by Judge Torres in the BinanceUS case. This comes after another judge rejected the ruling in a different case involving the SEC and Terraform Labs. 

Additionally, the exchange is also being watched because of the fear, uncertainty, and doubt (FUD) around a potential Department of Justice lawsuit, which has been fueled by continuing investigations and hints from former SEC employees of an impending DOJ case similar to the one brought by the SEC. 

Do you think crypto is ready to take the risk of another fall of the domino? Is Binance buying time to settle the dust? Tell us your views.