Binance CZ says SEC lawsuit is ‘an attack on the entire industry’

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Binance CEO Chang­peng Zhao (CZ) described the U.S. Secu­ri­ty and Exchange Com­mis­sion law­suit against his firm as an attack on the entire cryp­to industry.

On June 5, the SEC filed a law­suit against Binance, and relat­ed enti­ties, alleg­ing fed­er­al secu­ri­ties law vio­la­tions plac­ing Amer­i­can investors at risk, includ­ing the firm offer­ing of unreg­is­tered secu­ri­ty tokens in BNB, ADA, and ALGO, among others.

Binance claims the SEC lawsuit is an overreach

In a June 5 state­ment, Binance said the SEC’s law­suit is an “over­reach” because it is not a U.S. exchange. The firm said it stands with “dig­i­tal asset mar­ket par­tic­i­pants in the U.S.” and is “pre­pared to fight [the law­suit] to the full extent of the law.”

Despite its coop­er­a­tion with the reg­u­la­tor, Binance denied the alle­ga­tions and expressed dis­ap­point­ment at the SEC’s actions. It said:

“The SEC’s refusal to pro­duc­tive­ly engage with us is just anoth­er exam­ple of the Commission’s mis­guid­ed and con­scious refusal to pro­vide much-need­ed clar­i­ty and guid­ance to the dig­i­tal asset industry.”

Addi­tion­al­ly, the U.S. sub­sidiary of the embat­tled exchange, Binance.US, labeled the SEC’s law­suit as “base­less,” describ­ing it as the lat­est exam­ple of the Commision’s reg­u­la­tion-by-enforce­ment approach towards the cryp­to industry.

Crypto community backs Binance

Mean­while, the law­suit appears to have unit­ed the cryp­to com­mu­ni­ty, with sev­er­al promi­nent fig­ures com­ing for­ward in sup­port of Binance.

Car­dano (ADA) founder Charles Hoskin­son said the law­suit was “the next in a series of steps to imple­ment choke­point 2.0 in the Unit­ed States.” Hoskin­son not­ed that this is not a reg­u­la­to­ry event but a polit­i­cal, philo­soph­i­cal dis­agree­ment about the exis­tence of cryp­tocur­ren­cies and what they represent.

TRON founder Justin Sun replied to CZ, say­ing he is “ful­ly aware of your ded­i­ca­tion to advanc­ing the cryp­tocur­ren­cy indus­try, and your abil­i­ties and ethics are beyond reproach.”

The post Binance CZ says SEC law­suit is ‘an attack on the entire indus­try’ appeared first on Cryp­toSlate.

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