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Key Points
- CZ, Binance International CEO has expressed dissatisfaction with the U.S. SEC after the U.S. branch of the exchange was served earlier today
- The SEC has filed a civil lawsuit against the exchange claiming that the exchange has been breaking security laws in the nation
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Binance CEO Changpeng Zhao (CZ) calls SEC out
Binance CEO Changpeng Zhao (CZ) has expressed concern with the U.S. SEC after it sued the U.S. installment of the exchange. This branch has been operating away from the international one offering lesser crypto assets to comply with the U.S. regulations.
However, the U.S. SEC seems to disagree with how its run. It has accused Binance US of providing trading services for securities such as BNB, BUSD, SOL, ADA, MATIC, FIL, ATOM, SAND, MANA, ALGO, AXS, and COTI.
It has also also accused Binance of providing coin-earning programs BNB Vault and Simple Earn, and staking investment plan; in addition, the SEC accused Binance of intentionally evading US supervision. CZ has commented on the developments saying that these are acts of attack against crypto considering that the SEC has been serving other crypto exchanges like Kraken and Coinbase in arguably unreasonable way, “regulation by enforcement.”
Cardano founder Charles Hoskinson has commented on the matter talking about the SEC heading operation Chokepoint 2.0 which is meant to smother crypto and lead to the adoption of a state controlled CBDC. In his words, he said
“With respect to Binance, I’m reading through the SEC complaint. It’s over 130 pages, but seems like the next in a series of steps to implement chokepoint 2.0 in the United States. The end goal is a agenda based CBDC partnered with a handful of massive banks and end-to-end control over every aspect of your financial life.”
He added that the ongoing crypto attacks calls for the removal of officials who think investors do not have a right to dictate what happens with their wallets dubbing it “authoritarianism” that needs to be put to an end.
“A regulatory event is where you have a debate about compliance with a law or guidance. This event seems to be a political philosophical disagreement with the very existence of cryptocurrencies and what they represent. An unelected group of people have decided that concepts like self-sovereign identity, owning your wallet, and the freedom to control your economic agency should be removed from the masses and given to the “enlightened” few.”
Crypto industry preparing to fight back?
A highly anticipated ruling on the XRP vs SEC is set to be issued in a few months. The industry hopes for a win which could mean an easier time with SEC and the start of a defence against its unfavorable enforcements. Next on, Coinbase has started a legal process with the SEC after the authority served them saying they have been breaking securities laws in the U.S.CEO, Brian Armstrong has said that he does not believe they are in the wrong and the team will defend itself in court.
When asked about the possibility of the CEXes teaming up to fight back, CZ has said that its not arranged yet. However, that doesn’t mean it can’t happen.
Keep watching Fintech Express for updates on this story as its still developing.