- Binance accuses SEC of false accusations and alleges conflict of interest.
- Binance seeks to restrict SEC’s public statements in the ongoing legal battle.
The ongoing legal battle between Binance[BNB] and the U.S. Securities and Exchange Commission (SEC) has had a profound impact on both the cryptocurrency exchange and the broader crypto market. The SEC’s allegations against Binance included claims of listing unregistered securities and offerings.
However, Binance, along with its legal team, vehemently denied these accusations, further accusing SEC Chairman Gary Gensler of a conflict of interest. Binance also claimed that Gensler had sought an informal advisory role with the exchange prior to assuming his position as SEC chair.
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David vs Goliath
In a recent filing , Binance took an aggressive stance in its dealings with the SEC. The exchange and its legal team asserted in the US District Court for the District of Columbia that the SEC had disseminated misleading statements regarding the management of customer assets. Binance emphasized that there was no evidence to support the SEC’s allegations of unauthorized commingling or diversion of customer assets.
These actions by Binance indicate its strong response to what it perceives as false accusations by the SEC, potentially influencing the jury pool. Additionally, Binance’s legal team has accused the SEC of violating court rules as well as its own code of conduct.
If Binance’s motion is approved by the judge, it could restrict the SEC from making certain public statements. Additionally, Binance claimed that these statements would lead to market confusion. The outcome of this legal dispute will undoubtedly have significant implications for Binance, the SEC, and the cryptocurrency sector.
Impacts of the legislative battle
Despite some positive regulatory developments for Binance, the ongoing legal battle has already caused some damage to the exchange’s reputation. Several countries have started to distrust Binance, and the exchange recently failed to obtain a license to operate as a virtual asset service provider (VASP) in the Netherlands.
Realistic or not, here’s BNB market cap in BTC’s terms
At the time of writing, BNB, the native token of Binance, was trading at $243.21. The token experienced a significant price decline over the past week, and its trading velocity also decreased.
These indicators suggested that the frequency of BNB trading witnessed a drop. Furthermore, the token’s Market Value to Realized Value (MVRV) ratio was negative. This indicated that a majority of BNB holders were currently not in a profitable position.
Source: Santiment