Gary Gensler’s Securities and Exchange Commission (SEC) has been at the center of controversy, with Binance.US labeling the regulatory body’s actions as unjust and damaging to their business. The interim chief of Binance.US, Norman Reed, spoke out in an interview with CoinDesk, highlighting the challenges faced by the exchange in the wake of the SEC’s accusations.
In June 2023, the SEC filed a lawsuit against Binance and Binance.US, as well as their owner Changpeng Zhao, alleging violations of securities laws. This legal battle culminated in a $4.3 billion settlement with U.S. authorities, with Zhao serving jail time. However, Binance.US, as a separate legal entity, was not part of this settlement and has been embroiled in ongoing litigation with the SEC.
The fallout from the SEC’s actions has been significant for Binance.US, with the exchange forced to operate as a crypto-to-crypto only platform, losing customers and experiencing financial setbacks. Reed expressed frustration at the damage caused by the SEC’s allegations, which led to layoffs and a loss of banking partners.
Despite these challenges, Reed remains optimistic about Binance.US’s future, with plans to reinstate USD fiat services and rebuild partnerships with banks and regulators. He emphasized the resilience of the company and its determination to overcome the obstacles imposed by the SEC.
Reed also highlighted the disproportionate impact of the SEC’s actions, noting that other regulatory bodies, including the DOJ, CFTC, OFAC, and FinCEN, did not pursue similar actions against Binance.US. He criticized the SEC for targeting the exchange and creating a climate of fear among financial institutions.
The debanking of Binance.US, which Reed likened to “Operation Chokepoint 2.0,” further exacerbated the challenges faced by the exchange. The SEC’s tactics, including subpoenas and fear mongering, resulted in a loss of banking partners and payment processors.
Despite the SEC’s allegations, Reed maintained that there was no evidence of wrongdoing on the part of Binance.US. He criticized the regulator for continuing to issue press releases and tarnish the exchange’s reputation without factual basis.
Looking ahead, Reed expressed confidence in Binance.US’s ability to overcome the obstacles imposed by the SEC and emerge stronger than ever. He praised the dedication of his team and emphasized the company’s resilience in the face of adversity.
As Binance.US continues to navigate the regulatory landscape and rebuild its business, Reed’s leadership and determination are key factors in the exchange’s quest for redemption. The story of Binance.US serves as a cautionary tale of the challenges faced by crypto businesses in an environment of regulatory scrutiny and uncertainty.