- Binance Accuses SEC of False Allegations and Alleges Conflict of Interest.
- Binance is trying to curtail SEC public statements in the ongoing legal battle.
The ongoing legal battle between Binance[BNB] and the US Securities and Exchange Commission (SEC) has been a major influence on both the cryptocurrency exchange and the broader crypto market. The SEC’s allegations against Binance include claims of listing of unregistered securities and offerings.
However, Binance, along with its legal team, vehemently denied these allegations and further accused SEC Chairman Gary Gensler of a conflict of interest. Binance also claimed that Gensler had sought an informal advisory role on the exchange before assuming his position as SEC chairman.
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David against Goliath
In a recent filing, Binance took a aggressive attitude in its dealings with the SEC. The exchange and its legal team alleged in U.S. District Court for the District of Columbia that the SEC had made misleading statements about the management of clients’ assets. Binance stressed that there was no evidence to support the SEC’s allegations of unauthorized mixing or diversion of client assets.
These actions by Binance indicate that it is reacting strongly to what it considers to be false allegations by the SEC, potentially affecting the jury pool. In addition, Binance’s legal team has accused the SEC of violating court rules and its own code of conduct.
If Binance’s motion is approved by the court, it could bar the SEC from making certain public statements. In addition, Binance claimed that these statements would lead to market confusion. The outcome of this legal dispute will undoubtedly have significant ramifications for Binance, the SEC and the cryptocurrency industry.
Consequences of the legislative battle
Despite some positive regulatory developments for Binance, the ongoing legal battle has already done some damage to the exchange’s reputation. Several countries have come to distrust Binance and the exchange has recently been denied a license to operate as a virtual asset service provider (VASP) in the Netherlands.
Realistic or not, here is the BNB market cap in terms of BTC
At the time of writing, BNB, Binance’s native token, was trading at USD 243.21. The token experienced a significant drop in price over the past week and the trading speed also slowed.
These indicators suggested that the frequency of BNB trading was declining. In addition, the token’s market value to realized value (MVRV) ratio was negative. This indicated that a majority of BNB holders were not currently in a profitable position.
Source: Sentiment