Binance is preparing for a significant legal battle against the U.S. Securities and Exchange Commission (SEC) in a Washington courtroom next week involving the world’s largest crypto exchange, which could shape future cryptocurrency regulation.
The crypto giant seeks to dismiss an SEC lawsuit filed in June, with arguments scheduled before Judge Amy Berman Jackson on Monday.
The SEC has levelled multiple charges against Binance, including artificial inflation of trading volumes, misappropriation of customer funds, and allowing U.S. customers access to its platform. The agency also alleges that Binance facilitated trading certain crypto tokens it considers securities.
Originally set for Friday, the hearing was postponed to Monday, January 22, due to snow in Washington, DC.
This hearing follows a similar SEC case against Coinbase, another U.S. exchange. Both are pivotal in determining the SEC’s jurisdiction over cryptocurrencies. The SEC maintains most crypto tokens are akin to securities, a view contested by the crypto sector.
BAM Trading, Binance.US’s operator, has contended in court filings that the SEC’s fraud accusations are unsubstantiated.
Binance, echoing Coinbase’s stance, argues the SEC lacks authority over crypto assets.
Last year, Binance Holdings settled with the U.S. Department of Justice and Commodity Futures Trading Commission for $4.3 billion. CEO Changpeng Zhao admitted to violating anti-money laundering laws.
However, the SEC’s case, targeting Binance’s core operations, remains unresolved. It’s one among many the SEC has pursued against crypto firms recently.
Under Chair Gary Gensler, the SEC’s focus has shifted from digital token issuers to trading platforms, clearing activities, and broker-dealers.
Crypto companies, disputing the SEC’s security definition for most tokens, advocate for specific legislation to regulate the industry.
