Binance And The SEC Met In Court
The dispute between cryptocurrency exchange Binance and the U.S. Securities and Exchange Commission reached a climax when the two sides met in a court hearing on Sept. 18.
The SEC accuses Binance of being uncooperative, while the exchange characterized the hearings as "unduly burdensome." One of the main issues of the hearing is Binance's U.S. division and its Ceffu user funds vault. The SEC argues that Ceffu is legally owned by Binance, which violates laws and causes the threat of fund leaks. However, Binance claims that only U.S. employees will have access to the funds.
In court, the SEC demanded that Binance provide access to the testimony of its executives as well as access to the company's software, but Judge Faruqui denied the regulator's request and suggested alternatives, such as preparing more specific requests for information and speaking to a wider range of witnesses.
The court's September 18 ruling was a partial setback for the regulator in its case against Binance. However, the SEC stands its ground and argues that the U.S. division of the exchange should be more thoroughly scrutinized because the security of users' assets is at risk. Still, Judge Faruqui ordered Binance to disclose 16 documents and partially disclose nine more back on September 15.
SEC Lashes Out At Binance, Threatening To Seek A Contempt Order— John Reed Stark (@JohnReedStark) September 16, 2023
The litigation war between the U.S. Securities and Exchange Commission (SEC) and Binance continues to heat up exponentially.
Specifically, thanks to some limited “judicial unsealing,” (albeit amid lots of… pic.twitter.com/QhrifkACL4
Meanwhile, commissioner Hester Peirce discusses the current state of the SEC. Peirce is one of the five members of the SEC and a supporter of cryptocurrencies. She has repeatedly called on the Commission to provide clarity on digital assets. At the Permissionless II conference in Austin, she shared that she did not expect how far behind the SEC was in finding a regulatory framework for cryptocurrencies. While she also discussed that the SEC is currently embroiled in litigation with cryptocurrency companies, she believes that cryptocurrency companies should not give up on the U.S. market and continue to fight.