The judge rejected a U.S. securities regulator’s plea to ban BinanceU.S. to inspect. documents.
BinanceUS is an American cryptocurrency exchange, a subsidiary of the global cryptocurrency exchange Binance. In June this year, the US Securities and Exchange Commission (SEC), the top US financial regulator, BinanceUS, sued Binance and its CEO Changpeng Zhao (CZ) for unregistered securities offerings and customer fund transactions with a lack of security.
On September 18, 2023, US DC District Judge Zia Faruqui ultimately rejected this SEC inspection plea. The plea was for an inspection at BinanceU.S. The SEC based its case on claims that Ceffu – a custody platform – was a Binance-related entity.
However, here people see this legal development as a small victory for BinanceUS over SEC’s blind enforcement actions, but people should know that the judge showed a lack of confidence in BinanceUS’ control over customer assets.
SEC vs crypto
Since 2021, the US SEC, led by Gary Gensler, has taken several enforcement actions against the crypto companies.
The majority of crypto companies blindly admitted their mistake and settled the case, and few of them went to court to fight the SEC’s enforcement actions.
But this year, Grayscale & Ripple-like crypto companies showed strict action and won a major victory against the SEC’s arguments in court, on behalf of rules, laws and facts.
Currently, US crypto exchanges Coinbase, BinanceUS, and Ripple are major players against SEC enforcement actions and are all independently fighting SEC in court.
BinanceUS is struggling due to declining profits as the exchange delisted more than 100 crypto asset trading pairs from the exchange following the SEC’s lawsuit. Trading volume on this exchange fell seriously. Some people claimed that Binance could struggle in the lawsuit as its financial position becomes weak.
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