Binance, the world’s leading blockchain ecosystem and cryptocurrency infrastructure provider, has responded to the recent complaint filed by the U.S. Securities and Exchange Commission (SEC). Binance expressed disappointment in the SEC’s choice to file the complaint, stating that it will vigorously defend its business and the industry as a whole.
Binance highlights that it has actively cooperated with the SEC’s investigations and engaged in good-faith discussions to reach a negotiated settlement. However, the SEC’s actions demonstrate a lack of willingness to engage substantively with Binance. Binance respectfully disagrees with the SEC’s allegations that it operated as an unregistered securities exchange or illegally offered and sold securities.
The company asserts that Binance’s native token, BNB, is not a security but rather a native token designed to create an internal economy within the platform. The value of BNB derives from its participants. Binance also clarifies that the BUSD fiat-backed stablecoin is not a security, as identified by an independent agency, the Commodities Futures Trading Commission.
Furthermore, Binance emphasizes that all user assets on its platform and Binance affiliate platforms, including Binance.US, are safe and secure. It strongly refutes any allegations suggesting otherwise. Binance believes that the SEC’s actions are part of a rushed effort to claim jurisdictional ground and that investors do not appear to be the SEC’s priority.
In describing the SEC’s approach, Binance notes that it received a “Wells notice” earlier this year, which provided little to no details about the alleged violations. Despite its willingness to respond and find a reasonable resolution, the SEC issued a new set of document requests, seemingly as a pretext. When Binance requested additional time to respond, the SEC threatened to file a suit instead of engaging further. Binance believes the SEC’s real intent is to make headlines rather than protect investors.
Binance stresses that it has grown rapidly and continually upgraded its systems, controls, and technology to meet regulatory requirements. The company has invested heavily in compliance, spending $80 million on external compliance partners in the last two years alone. It reiterates that customer security and protection are its top priorities.
Despite the SEC’s actions, Binance intends to continue collaborating with regulators and policymakers worldwide. The company is committed to defending its business and advocating for the advancement of blockchain technology.