In a recent development, the U.S. Securities and Exchange Commission (SEC) has been denied its request to inspect Binance.US's software. This decision came from federal judge Zia Faruqui, further escalating the legal battle between the regulator and the U.S. affiliate of the world's largest cryptocurrency exchange.
The SEC wanted to examine Binance.US's software to investigate whether the custody platform Ceffu facilitated illegal transfers between Binance.US and Binance Holdings. However, Judge Faruqui stated that he was not inclined to grant the inspection at this time and suggested that the SEC provide a more specific request.
Binance CEO Changpeng Zhao (CZ) responded to the SEC's accusations regarding Ceffu, asserting that Binance US has never used Ceffu or Binance Custody. CZ called the SEC's allegations unfounded and emphasized that Binance.US operates independently.
The SEC's lawsuits against Binance and other crypto exchanges, such as Coinbase, have drawn criticism from lawmakers who argue that the regulatory agency's "regulation by enforcement" approach is counterproductive and detrimental to the crypto industry. Congressman Ritchie Torres condemned the SEC's actions and expressed the need for a legislative framework to guide industry participants.
The next hearing for Binance.US's case is scheduled for October 12, as reported by Crypto Briefing. The outcome of this legal battle will have significant implications for the cryptocurrency industry, as it will shape the regulatory landscape and determine the level of oversight imposed on exchanges like Binance.US.
