Binance’s U.S. branch, BinanceUS, has submitted a 60-page petition to the Securities and Exchange Commission (SEC), requesting the dismissal of the case against them. The petition emphasizes that the allegations of wash trading on the Binance platform are not backed by evidence. The SEC had alleged that BinanceUS and CEO Changpeng Zhao made false statements regarding preventing market manipulation.
In the 60-page petition, the lawyers for Binance and Zhao accused the SEC of failing to provide clear guidelines to the crypto exchange sector prior to initiating the lawsuit against them.
SEC Overstepped Its Authority
Binance CEO, Changpeng “CZ” Zhao, and the company pointed out that the SEC has exceeded its jurisdictional limits in the charges made against them.
The petition also criticized the SEC for not providing clear guidelines to the crypto exchange sector before filing a case against Binance. Lawyers highlight that, as a result, the commission is attempting to retroactively impose its regulatory authority over the crypto industry, and they seek exoneration.
Claim of Misinterpretation of Securities Laws:
Binance’s legal team argues that the SEC’s interpretations of securities laws and how these laws should be applied to crypto assets are incorrect. The lawyers state, “While the SEC claims regulatory authority over the crypto industry, it distorts the text of the securities laws.”
In summary, Binance and its CEO, Changpeng Zhao, refute the charges brought against them by the SEC, alleging that the commission has overstepped its bounds and misinterpreted the laws.