Binance files court order seeking protection against SEC, cites unduly burdensome requests
|- Binance claimed that the SEC’s requests for the company's communications are "overbroad" and "unduly burdensome".
- The exchange is seeking protection against the US financial regulator and states that the SEC is conducting a fishing expedition.
- In its court filing, Binance notes that the SEC has urged the exchange to hand over communication dating back to November 2022.
Binance filed a motion seeking a protective order concerning deposition notices and discovery requests made by the US Securities & Exchange Commission (SEC). The exchange states that the financial regulator is asking for communication that includes topics that have nothing to do with customer assets.
Binance argues that the platform has provided sufficient information to the regulator but that the SEC has continued its “fishing expedition.”
Also read: Ripple XRP sees spike in inflow from institutional investors despite looming SEC appeal
Binance seeks protection against SEC inquiries
Binance, one of the largest cryptocurrency exchanges in the world, filed a motion for a protective order against the SEC. The exchange says that the regulator is simply looking for issues with the exchange, and by that it refers to demands of information based on what it terms the SEC’s hunches and accusations.
In the August 14 court filing, BAM Trading, the company behind Binance.US, seeks a protective order and cites the different deposition notices and discovery requests made by the regulator. The exchange says that the SEC has asked for communications dating back to November 2022 and that much of this has no relevance to customer assets.
According to the platform, it has cooperated with the SEC and provided sufficient information to the regulator, working in good faith. However, the exchange interprets SEC’s approach as an investigation into every aspect of BAM’s asset custody practices without any discernible limitation.
The filing reads:
The SEC has declined BAM’s proposals or to meaningfully limit its requests. The SEC’s position is unreasonable and part of a broader pattern of the SEC abusing the discovery provision of the Consent Order.
While the Consent Order authorizes the SEC to engage in narrow and limited discovery to ensure customer assets are available, Binance claims the regulator is creating an investigation in search of a crime.
The filing explains that six of the exchange’s executives, including CEO Changpenge Zhao (known as CZ), are available for depositions.
The exchange’s native token BNB is currently trading at $239.50, on Binance, within in its multi-month downward trend that started in April 2023.
Bitcoin, altcoins, stablecoins FAQs
What is Bitcoin?
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
What are altcoins?
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
What are stablecoins?
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
What is Bitcoin Dominance?
Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.
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