Binance.US has asked a federal judge to reject the SEC’s request to freeze its assets, contending that doing so will cease its operations.
Binance, during a legal battle with the regulator, the US has urged a federal magistrate to deny the US SEC’s request to freeze assets on the cryptocurrency exchange. There are reports that Binance’s US subsidiary argued freezing its assets would impair its business and harm its customers.
With the ability to pay employees, vendors, suppliers, and professionals, as well as maintain the trading platform, they will continue operations. Monday, US attorneys stated in a court filing.
“With a freeze of all corporate assets, banking partners would most likely cease to honor requests to transfer funds for any purpose, including customer redemptions,” the exchange added.
The SEC had asked the federal court to seize Binance.US’s assets after it sued Binance entities and founder Changpeng Zhao last week, alleging “blatant disregard for US securities laws” and “years of violative conduct” that placed customer funds at risk.
Binance Guarantees Security of US Client Assets
Binance, In their court filing, US attorneys also argued that US customer assets are secure and that the SEC’s draconian relief request is unnecessary.
As previously reported, the US SEC had filed an emergency action application for a temporary restraining order to freeze Binance.US’s assets to safeguard customer funds, including through the repatriation of foreign client investments. Binance has vigorously denied the accusations.
Proposed Bill Aims to Dismiss the SEC Chair
On Monday, Republican representative Warren Davidson introduced the “SEC Stabilization Act” to the House. Gary Gensler’s dismissal as SEC chairman is one of the primary provisions of the law.
In addition to removing Gary Gensler as chair of the SEC, the measure would rebalance the power between the SEC chair and commissioner. Although neither Warren Davidson nor Tom Emmer specifically mentioned cryptocurrencies in their statements, both have a positive stance on crypto.
