BUSD

Gary

<p class="is-style-lead">The American division of the Binance cryptocurrency exchange, Binance.US, is preparing for a new fight with American regulators.</p>
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   <li><a href="#u-s-court-allows-sec-to-continue-case-against-binance" rel="noopener noreferrer nofollow">U.S. court allows SEC to continue case against Binance</a></li>
   <li><a href="#what-the-experts-say" rel="noopener noreferrer nofollow">What the experts say</a></li>
   <li><a href="#binances-legal-proceedings-with-american-regulators" rel="noopener noreferrer nofollow">Binance’s legal proceedings with American regulators</a></li>
   <li><a href="#how-the-lawsuit-against-binance-affected-the-crypto-market" rel="noopener noreferrer nofollow">How the lawsuit against Binance affected the crypto market</a></li>
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<p>Binance.US <a href="https://x.com/BinanceUS/status/1807905912231022593" target="_blank" rel="noopener noreferrer nofollow">released</a> a statement declaring its readiness to continue to fight the U.S. Securities and Exchange Commission (<a href="https://crypto.news/tag/sec/" target="_blank" rel="noopener noreferrer nofollow">SEC</a>). The platform team recalled that the court ruled that the regulator’s case against Binance.US will be continued.</p>
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 <p>“We were prepared for this and look forward to having this case move forward in the judicial process.”</p> <cite>Binance.US statement</cite>
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<p>The team reminded that Binance.US was founded to serve clients according to U.S. rules and regulations. Additionally, the platform claims to have used the SEC’s limited guidance to the industry to conduct business in compliance.</p>
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 <p>“We, like many companies in our industry, have fallen victim to the SEC’s regulation by enforcement approach and politically motivated overreach under its current leadership.”</p> <cite>Binance.US statement</cite>
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<p>Binance.US emphasized that the SEC has yet to identify any evidence of wrongdoing by the exchange during its 11-month process. Therefore, the SEC’s case must be supported by the facts or the law, and the Commission needs more authority to bring a claim.</p>
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 <p>“Our business is on strong footing, and our commitment to giving Americans access to digital assets remains unchanged. The fight continues.”</p> <cite>Binance.US statement</cite>
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<h2 class="wp-block-heading" id="u-s-court-allows-sec-to-continue-case-against-binance">U.S. court allows SEC to continue case against Binance</h2>
<p>On June 28, the U.S. court <a href="https://crypto.news/binance-mixed-bag-court-dismisses-some-charges-not-all/" target="_blank" rel="noopener noreferrer nofollow">rejected</a> Binance’s motion to dismiss the SEC case on most counts. The exchange failed to convince a U.S. court to dismiss most of the charges brought against it by the SEC.</p>
<p>Judge Amy Berman Jackson granted the exchange’s request to withdraw the regulator’s claims regarding secondary sales of the BNB token, the BUSD stablecoin offering, and the Simple Earn product. The SEC’s investigation will continue into the ICO and subsequent sales of the BNB platform, the BNB Vault program, failure to register, and failure to comply with anti-fraud regulations. The same goes for the staking service on Binance.&nbsp;</p>
<p>Additionally, SEC charges against former Binance CEO <a href="https://crypto.news/tag/Changpeng-Zhao/" target="_blank" rel="noopener noreferrer nofollow">Changpeng Zhao</a> remain in force. The regulator argues that it acted as a “controlling person” and that the trading platform was required to register under the Exchange Act.</p>
<p>You might also like: <a href="https://crypto.news/binance-us-coo-claims-sec-lawsuit-led-to-banks-withdrawing-support-strangling-business/" rel="noopener noreferrer nofollow"> Binance.US COO claims SEC lawsuit led to banks withdrawing support, strangling business </a></p>
<h2 class="wp-block-heading" id="what-the-experts-say">What the experts say</h2>
<p>Despite the court’s decision, lawyer Scott Johnson called Berman Jackson’s ruling a “big defeat” for the regulator.</p>
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   <p lang="en" dir="ltr">Wow, big loss for the SEC in Binance re: secondary sales. I was expecting this type of analysis from Failla, but Berman seems to have given it instead. <a href="https://t.co/5vPPew4WLl" target="_blank" rel="noopener noreferrer nofollow">pic.twitter.com/5vPPew4WLl</a></p>— Scott Johnsson (@SGJohnsson) <a href="https://twitter.com/SGJohnsson/status/1806882804057117175?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">June 29, 2024</a>
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<p>Fox Business journalist Eleanor Terrett expects that lawyers from <a href="https://crypto.news/tag/Coinbase/" target="_blank" rel="noopener noreferrer nofollow">Coinbase</a>, <a href="https://crypto.news/tag/Kraken/" target="_blank" rel="noopener noreferrer nofollow">Kraken</a>, and <a href="https://crypto.news/tag/Consensys/" target="_blank" rel="noopener noreferrer nofollow">Consensys</a> will use the latest decision in the SEC case against Binance. This will significantly strengthen their position in litigation initiated by the regulator.</p>
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   <p lang="en" dir="ltr">You can fully expect <a href="https://twitter.com/coinbase?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">@coinbase</a>, <a href="https://twitter.com/krakenfx?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">@krakenfx</a> and <a href="https://twitter.com/Consensys?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">@Consensys</a> lawyers to use this opinion to bolster their positions in their own litigations.<br><br>And the <a href="https://twitter.com/SECGov?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">@SECGov</a> lawyers can no longer argue that the <a href="https://twitter.com/Ripple?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">@Ripple</a> ruling was merely an outlier that no other judges agree with. <a href="https://t.co/xC4VOtJvOX" target="_blank" rel="noopener noreferrer nofollow">https://t.co/xC4VOtJvOX</a></p>— Eleanor Terrett (@EleanorTerrett) <a href="https://twitter.com/EleanorTerrett/status/1806902007011119157?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">June 29, 2024</a>
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<h2 class="wp-block-heading" id="binances-legal-proceedings-with-american-regulators">Binance’s legal proceedings with American regulators</h2>
<p>On June 5, 2023, the SEC <a href="https://crypto.news/sec-sues-binance-and-cz-for-securities-violations/" target="_blank" rel="noopener noreferrer nofollow">filed</a> a lawsuit against Binance, Zhao, and several affiliated companies for violating securities trading regulations. It follows from the court document that the Commission recognized the BNB token and the BUSD stablecoin, which bears the exchange’s brand, as securities.</p>
<p>Binance emphasized its intention to defend itself against the SEC’s charges. The exchange blames the agency for the lack of productive interaction and failure to provide clarity and guidance to the digital assets sector.</p>
<p>You might also like: <a href="https://crypto.news/binance-under-fire-prosecutors-eye-5-year-oversight/" rel="noopener noreferrer nofollow"> Binance under fire: prosecutors eye 5-year oversight </a></p>
<p>However, in November 2023, <a href="https://crypto.news/tag/Binance/" target="_blank" rel="noopener noreferrer nofollow">Binance</a> settled the claims of the U.S. Department of Justice (<a href="https://crypto.news/tag/DoJ/" target="_blank" rel="noopener noreferrer nofollow">DOJ</a>) regarding violation of the sanctions regime and money laundering, agreeing to pay $4.3 billion. The fine for Zhao personally amounted to $50 million.&nbsp;</p>
<p>In December 2023, the regulator published a series of documents containing, among other things, previously undisclosed evidence and admissions of guilt by the trading platform. The SEC took notice and stated that it plans to continue legal proceedings against Binance despite the settlement with the DOJ.</p>
<p>According to regulator representatives, the federal court should consider all statements and admissions made by the exchange and Zhao on Nov. 21, 2023. For example, in an agreement with the DOJ, the crypto exchange admitted that it knowingly violated the law. However, in the SEC case, the platform argued that the Commission never notified it of non-compliance with the securities regulations.</p>
<h2 class="wp-block-heading" id="how-the-lawsuit-against-binance-affected-the-crypto-market">How the lawsuit against Binance affected the crypto market</h2>
<p>Legal problems have affected Binance’s market position. Binance claims the SEC is overreacting, and its former CEO, Zhao, defends the company’s practices. However, the cryptocurrency market remains cautious as it watches these legal proceedings unfold.</p>
<p>SEC continues to take enforcement action against crypto firms. SEC Chairman <a href="https://crypto.news/tag/Gary-Gensler/" target="_blank" rel="noopener noreferrer nofollow">Gary Gensler</a> argues that most digital assets are unregistered securities and that the regulator is committed to regulating the industry.&nbsp;</p>
<p>This ongoing lawsuit against Binance is part of a broader crackdown on the crypto industry. As the lawsuit continues, its outcome will likely have severe consequences for Binance and the wider cryptocurrency market.</p>
<p>You might also like: <a href="https://crypto.news/binance-us-under-sec-scrutiny-for-alleged-non-compliance-in-asset-custody-probe/" rel="noopener noreferrer nofollow"> Binance.US under SEC scrutiny for alleged non-compliance in asset custody probe </a></p>

Why Binance gets ready to continue fight with SEC?

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