The regulator claims that Binance functioned unlawfully in the United States and did not register as a securities exchange.
In a complaint against Binance, the Securities and Exchange Commission (SEC) asserts that the cryptocurrency exchange has been running an unregistered securities exchange. The SEC asserts that Binance violated federal law by allowing US citizens to trade securities without first registering with the SEC.
The United States Securities and Exchange Commission (SEC) filed suit against Binance, its U.S. platform and Changpeng Zhao (CZ) in the District Court for the District of Columbia on June 5th.
The SEC is asking Binance to return its earnings and provide it injunctive relief. In a string of enforcement actions the SEC has taken against bitcoin exchanges, the lawsuit is the most recent. The SEC has filed enforcement actions against BitMEX, Poloniex, and Kraken in recent years.
Including unauthorized offers and sales of the BNB (BNB) and BUSB tokens, the Simple Earn and BNB Vault products, and its staking program, the US regulator filed 13 allegations against Binance.
A notable milestone in the regulation of cryptocurrencies is the SEC’s case against Binance. The lawsuit might put a brake on the growth of the cryptocurrency market by making it more challenging for US-based cryptocurrency exchanges to conduct business.
The lawsuit is also evidence that the SEC is approaching cryptocurrency regulation with increased vigor. The SEC has made it clear that it is prepared to take legal action against bitcoin exchanges that disobey federal regulations.
The outcome of the lawsuit could have a significant impact on the cryptocurrency industry. If the SEC is successful, it could force Binance to shut down its US operations or register with the SEC. This could have a ripple effect throughout the cryptocurrency industry, as it could make it more difficult for other cryptocurrency exchanges to operate in the US.
*** Personally this all feels like a market manipulation ***