Introduction

Binance.US has strongly opposed the SEC’s proposed temporary restraining order, claiming that it will effectively terminate business operations.

The cryptocurrency exchange has provided a response on On June 12, he slammed the SEC’s emergency proposal as “draconian and overly burdensome.”

BinanceUS argues that if the restraining order is granted, it will have a significant impact on BAM Trading Services Inc., the entity responsible for providing encryption trading and exchange services for Binance. The filing asserted that customers would be the primary victims, holding BAM back ability to work and defend themselves in ongoing litigation.

SEC’s Exchange Disputes Failure To Get Acquainted With The Securities

Notably, Binance.US challenged the SEC’s general approach to pursuing legal action, asserting that “all of Securities and Exchange Commission Claims fail because of the regulator failure to specify any specific security trading on BAM platform. The SEC had previously alleged that at least 67 cryptocurrencies qualified as securities.

The SEC suggests that it is from the previous conclusion that cryptocurrency is a security, but this is not the case. Several cryptocurrency exchanges, including BAM, have been operating in United State for Years without SEC involvement belies the claim that it is clearly covered by securities laws.”

Moreover, Binance.US highlighted its extensive collaboration with The SEC’s ongoing investigation, which has begun in December 2020. According to the filing, the company filed over 700,000 individual contacts and comprehensive data on Its daily operations due to this investigation.

Ramifications for Banking Partners and Customers

The company expressed its concerns about the freeze on all companies’ assets, which will most likely lead to banking partners who refuse to facilitate financing transfers, including customer refunds. In fact, Binance.US revealed that one of its partners was bankers already inform them of her intention is to stop serving the company, effective June 14.

Addressing customer concerns, Binance.US reassured that customer assets were safe and appropriately separate and available for withdrawal.

The SEC initially launched significant legal action against Binance and its affiliates on June 5, claiming that the cryptocurrency exchange failed to register as a stock exchange and allow US clients to do so trade Cryptocurrencies classified as securities.

The next day, the SEC filed an emergency order for a temporary restraining order seeking a freeze assets detained on Binance.US even the exchange can prove that the funds were out of reach of CEO Changpeng Zhao (CZ) or any other Binance executive.

Low Liquidity on Binance.US Central Regulatory Pressure

In response to mounting regulatory lobbying, Binance.US announced the comment of we dollar deposits on June 9 to protect the interests of customers.

The influence of Legal action of the Securities and Exchange Commission against Binance has been clear, with liquidity on Binance.US down almost 80% in the past of the week, according to crypto-data analytics firm Kaiko. Market makers and traders are reported to have abandoned the stock exchange amidst regulatory audit.

While Binance and Binance.US have consistently refuted the SEC allegations on social media provided their joint note with represents their deposit first official respond to allegations.

The note argued that the Securities and Exchange Commission failed to provide evidence of mishandling or misuse of BAM client assets She described the SEC’s actions as a manufactured emergency for its own purposes.