Binance.US opposed the SEC’s emergency motion for an asset freeze of the exchange, calling it \”draconian and unduly burdensome\”.
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They argue that such a decision would effectively put an end to its operations, with the subsidiary BAM Trading Services being the hardest hit. A hearing on the motion is scheduled for June 13.
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\”The requested relief would primarily harm BAM’s clients, effectively drive BAM out of business, and prevent BAM from defending itself in this lawsuit,\” the document says.
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Binance.US contends that \”all SEC claims are unfounded,\” because the regulator has not yet \”identified any securities transactions involving BAM.\”
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According to the exchange’s representatives, the company has made \”significant efforts\” to cooperate with the Commission’s investigation, which has been ongoing since 2020.
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\”The fact that numerous cryptocurrency exchanges, including BAM, have operated in the United States for years without intervention by the SEC undermines the claim that [cryptocurrencies] clearly fall under securities laws,\” Binance.US added.
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On June 5, 2023, the SEC filed suit against the Bitcoin exchange and its CEO Changpeng Zhao. The regulator charged them with 13 counts, including the sale of unregistered securities.
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In response, the company issued a statement in which it said it was prepared to vigorously defend itself.
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Subsequently, Binance.US announced the suspension of dollar deposits and urged clients to withdraw fiat funds by June 13.
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On June 6, the SEC filed a similar suit against Coinbase.