Binance.US braces for upcoming SEC tech review
A significant development in the case is the SEC’s plan to conduct a virtual inspection of Binance.US’s technology infrastructure, systems, and software. Binance.US has proposed the inspection at 7 pm ET on December 21.
This comes after the court initially denied the SEC’s request for an immediate inspection, advising the commission to refine its requests and consult additional witnesses. The inspection aims to give the SEC a deeper understanding of Binance.US’s operational frameworks and compliance mechanisms.
BAM Management US Holdings and BAM Trading Services (Binance.US) have fortified their legal representation in response to the escalating legal complexities. Attorneys Sheehan H. Band, Levi Giovanetto, Daniel J. Davis, Christian Kemnitz, and David Luger have officially filed notices of appearance in court on behalf of the entities. This move signifies the seriousness with which Binance.US is approaching the litigation.
Motion to dismiss and future outlook
Adding to the ongoing legal narrative, Binance Holdings, Binance.US, and co-founder Changpeng “CZ” Zhao recently filed a motion requesting Judge Amy Berman Jackson to dismiss the lawsuit with prejudice. The defendants argue that the SEC’s allegations are not substantiated and do not constitute securities law violations, particularly concerning listing cryptocurrencies and related products.
This legal maneuver highlights the defendants’ confidence in their stance against the SEC’s claims. The motion to dismiss, if granted, would mark a significant turn in the legal battle, potentially setting precedents for how cryptocurrency companies interact with regulatory bodies.
As the case progresses, the cryptocurrency industry and regulatory observers monitor the developments closely. The outcome of this legal dispute could have far-reaching implications for regulating digital assets and the interaction between pioneering crypto enterprises and traditional regulatory frameworks.
The collaborative efforts of both parties in document discovery and the upcoming inspection of Binance.US’s systems underscore the complexities and evolving nature of regulating the cryptocurrency market. As the January 25, 2024, status report approaches, the industry awaits further developments with keen interest.
