Binance.US, the American arm of the world’s largest cryptocurrency exchange, Binance, has been denied its request to limit the Securities and Exchange Commission’s (SEC) use of specific terms in press releases regarding its management of customer funds. The denial came from Judge Amy Berman Jackson, who is overseeing the SEC-Binance.US case, stating that the court’s role is not to manipulate public statements made by either party involved.
Binance’s lawyers had filed a complaint against the SEC, accusing the regulator of issuing “misleading extrajudicial statements” in a press release that could potentially prejudice the jury pool and misrepresent the evidence related to the defense. The lawyers emphasized that there was no evidence of any misappropriation or misuse of customer assets managed by BAM Trading Services, the entity behind Binance.US.
As the court considers Binance’s complaint against the SEC, the exchange continues to face challenges on multiple fronts. The SEC recently filed a lawsuit against Binance and its CEO, Changpeng “CZ” Zhao, alleging violations of federal securities laws. Additionally, Binance’s expansion plans suffered setbacks, as it faced regulatory scrutiny in Belgium and France, leading to the suspension of certain services. The exchange has also reportedly withdrawn its application with Austria’s financial regulatory authority.
While the court proceedings and regulatory investigations unfold, Binance made headlines with the launch of a regulated cryptocurrency platform in Kazakhstan. However, the company’s future remains uncertain as it navigates these legal and regulatory hurdles. Binance is expected to respond to the SEC’s allegations by September 21, while the regulator will reply to the exchange’s pleading by November 7.