Bitcoin free fall with a lot of negative news
The U.S. Securities and Exchange Commission (SEC) sued Binance, CEO Changpeng Zhao (CZ) and two other affiliates, alleging violation of U.S. securities trading rules. The indictment alleges that Binance and BAM Trading participated illegally in securities transactions, raised $200 million, violated registration requirements, and illegally sold securities. The SEC issued a ruling permanently prohibiting illegal securities transactions, ordering the elimination of illegal gains, and imposing civil financial penalties.
The U.S. Securities and Exchange Commission (SEC) indicted Binance and its CEO Changpeng Zhao (CZ) and two other affiliates, BAM Trading Services ("BAM Trading") and BAM Management US Holdings Inc. ("BAM Management"), alleging that the defendants violated U.S. stock market rules. In response, Binance issued a long article in response, which was sorted by Odaily Planet Daily as follows:
We are disappointed that the SEC chose to sue Binance today and seek so-called emergency relief. From the outset, we actively cooperated with the SEC investigation and worked hard to answer their questions and address their concerns. We have had a lot of discussions in good faith recently to find a negotiated solution to their achievement. But despite our efforts, the SEC abandoned this process in today's lawsuit, opting to act unilaterally and litigate. We're frustrated with this choice.
While we take the SEC's claims seriously, they should not be the subject of enforcement action by the SEC, let alone based on urgent circumstances. We are determined to vigorously defend our platform. Unfortunately, the SEC's refusal to cooperate with us is just another example of the Commission's erroneous and deliberate refusal to provide much-needed clarity and guidance to digital asset industry services.
Today's action is another in a series of examples, as with other encryption projects facing similar lawsuits, the Commission's decision to use the brute force of enforcement and litigation to regulate, rather than thinking that this dynamic and complex technology requires a careful approach. Even if other American authorities claim jurisdiction over certain codes and services, their unilateral classification as securities can only exacerbate these problems.
More surprisingly, the Securities and Exchange Commission's actions undermine the role of the United States as a global hub for financial innovation and leadership. In many parts of the world, digital asset laws remain immature, not regulating through law enforcement is the best route. An effective regulatory framework requires cooperation, transparency and deliberate political participation, a path abandoned by the Securities and Exchange Commission.
To be clear: Any claims that the user's assets on the Binance.US platform are never at risk are false, and since employees have ample time to investigate, there was no justification for the actions of employees. All user assets, including on Binance and Binance's affiliated platforms (including Binance.US), are secure and we will vigorously defend against any allegations to the contrary. Instead, the SEC's actions here seem to be in a rush to extract jurisdiction from other regulators, and investors do not seem to be a priority for the SEC. Due to our size and global popularity, Binance is now an easy target for the American organizational game.
Based on these developments, it seems that the SEC's objective here has never been to protect investors; If this is the case, employees could have dealt with us thoughtfully on factual issues to demonstrate the safety and security of the Binance.US. Instead, the SEC's true intention here seems to be to make headlines.
We will continue to work with regulators and policymakers in the United States and globally because it is the right thing to do. Binance is committed to being an active participant in ensuring that the next generation of cryptocurrency regulations promotes innovation while implementing and ensuring important consumer protection. Since Binance is not an American stock exchange, SEC procedures have been limited. However, we stand with participants in the US digital asset market against recent SEC abuses and are ready to fight the legal battle with all our strength.
We will work with industry partners to defend this important technology from misleading lawsuits. We will work tirelessly to provide a secure and secure platform that adheres to our core values to promote monetary freedom.