In a significant development in the cryptocurrency world, Binance.US, a leading American exchange, has announced to suspend USD withdrawals. This move comes in the wake of increasing legal pressure from the Securities and Exchange Commission.
Binance.US's Shift to “Crypto-Only”
Binance.US has decided to suspend USD deposits and delist USD trading pairs. The decision, effective from June 12th, is a part of the exchange's transformation into a crypto-only platform. If a customer has a USD balance after June 15th, the assets can be converted to a withdrawable stablecoin.
This strategic shift is a response to the mounting legal pressure from the SEC. The regulatory body has been intensifying its scrutiny of cryptocurrency exchanges and their compliance with federal securities laws.
SEC's Motion to Freeze Binance US Assets
In a related development, the SEC has asked a federal court to issue a temporary restraining order to freeze the U.S. assets of Binance. The motion, filed in the U.S. District Court for the District of Columbia, follows a lawsuit by U.S. regulators against Binance and its CEO Changpeng Zhao.
The SEC has accused Binance of years of violative conduct, including "disregard" for U.S. laws and "evasion of regulatory oversight." The allegations include artificially inflating its trading volumes, diverting customer funds, failing to restrict U.S. customers from its platform, and misleading investors about its market surveillance controls.
Binance's Response
Binance has responded to the SEC's motion, assuring that user assets would remain safe and the platform would continue normal deposit and withdrawal operations. The company has expressed its intention to defend itself in court and has labeled the SEC's step as "unwarranted."
Increased Tensions Flair
The ongoing legal battle between Binance and the SEC is a significant development in the cryptocurrency industry. It underscores the increasing regulatory scrutiny that cryptocurrency exchanges are facing. As Binance.US transitions to a crypto-only platform, it remains to be seen how this move will impact its user base and overall market position.
Amid such scrutiny from the SEC, Congressman Warren Davidson filed the SEC Stabilization Act to restructure the SEC and fire SEC Chair Gary Gensler which then trended on Twitter shortly after with over 32k+ tweets.