What’s going on with Binance? The cryptocurrency giant Binance is facing intense scrutiny due to legal issues with the US Securities and Exchange Commission (SEC). An FTX repercussion can be seen in this case. Binance’s CEO, Changpeng Zhao, is at the forefront of this battle against the regulatory agency. Its native token BNB is also down by 11% from last week and more downtrend is expected.
On multiple charges, the SEC blamed Binance for misleading investors and operating an unregistered and illegal cryptocurrency exchange. These claims are part of the SEC’s broader aim to streamline crypto assets, especially following the downfall of the FTX crypto platform last year. The SEC, led by Chair Gary Gensler, wants to regulate the crypto industry more closely. Does this mean the cat is out of the bag?
Post Ripple, Binance is also Relying on Experienced Attorney
In the latest update in the Binance vs. SEC case, lawyer Andrew Rhys Davies has asked to join the case as an expert attorney. This move comes as Binance.US seeks protection from the court because the SEC is going beyond what was previously agreed upon.
According to a recent filing in the Binance vs. SEC case, attorney Andrew Rhys Davies, from the law firm WilmerHale, is seeking permission to support BAM Management US Holdings and BAM Trading. With a wide experience in securities, banking, and financial regulation across different countries. Judge Amy Jackson has referred Binance.US’s protection request to Magistrate Judge Faruqui.
Binance.US claims the SEC is exceeding agreements and wants to halt depositions of their CEO and CFO. They also claimed the SEC’s demands for irrelevant documents were unreasonable and unjustified. However, Binance, along with Coinbase and Ripple, is challenging the SEC’s influence in the crypto industry. Some crypto investors believe the SEC’s actions have been harmful rather than protective.
What will be the outcome? Will the Court Favour Binance or SEC?
A former chief of the SEC, John Reed Stark, predicted that Judge Jackson would pass Binance’s request for protection to Magistrate Judge Faruqui for a decision, which turned out to be true. In this scenario, Stark believes that the Judge will likely grant most of what the SEC is asking for, but may not agree on the unnecessary parts. He also laid the fact that a lawsuit from the Department of Justice (DOJ) against Binance is likely and would have a big impact.
In the Meanwhile, the DOJ is accusing Binance of breaking US sanctions related to Russia. Stark believes that the DOJ is probably going to file a lawsuit against Binance.
What does this all mean, could Binance’s involvement in Russia potentially have wider implications, and how the ongoing scrutiny will impact the future of crypto regulation and the industry as a whole?
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