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Late on Monday, leading cryptocurrency exchange Binance made a significant move by filing for a protective court order against the U.S. Securities and Exchange Commission (SEC). Binance’s claim revolves around the assertion that the regulatory body’s requests for information are overly broad and place an undue burden on the exchange.
According to a court filing submitted to the US District Court of Columbia, BAM Trading, which is Binance U.S.’s operational entity, along with BAM Management, contended that they had already supplied an adequate amount of information to the SEC. The essence of the protective order is to impose limitations on the SEC’s actions. This includes a cap of four depositions from BAM employees. Additionally, the order seeks to have the deposition of BAM’s CEO and CFO removed from consideration, with the filing refraining from specifying any names.
Both Binance and the SEC have yet to issue immediate comments regarding this development.
The ongoing legal tussle between Binance and U.S. regulators took a notable turn in June when the SEC filed a lawsuit against the cryptocurrency exchange and its CEO, Changpeng Zhao. The regulatory body lodged a total of 13 charges, accusing Binance of orchestrating a “web of deception.” The allegations ranged from artificially inflating trading volumes and misusing customer funds to failing to adequately restrict U.S. customers from its platform and providing misleading information about its market surveillance controls.
In its court filing, Binance argued, “The SEC has still yet to identify any evidence suggesting that customer assets were misused or dissipated in any way.” The exchange has consistently pushed back against the SEC’s claims of wrongdoing and impropriety.
The legal maneuvering intensified as the SEC declined BAM’s efforts to substantially narrow down its information requests. Additionally, the regulatory body expressed opposition to the motion for a protective order. This marks yet another chapter in the ongoing battle between Binance and the SEC, with the exchange vehemently challenging the regulatory agency’s allegations and tactics.
As the crypto industry navigates increasing scrutiny from regulatory bodies, the outcome of this legal confrontation will be closely watched by market participants and stakeholders alike. The clash between Binance and the SEC underscores the broader challenge of harmonizing the evolving digital asset space with established regulatory frameworks.