Binance.US Seeks To Revoke US SEC’s Request To Freeze Its Funds

Binance.US has urged a federal judge to reject the US SEC’s request to freeze assets on the cryptocurrency exchange during a legal fight with the regulator. Binance’s US arm has argued that freezing its assets would cripple its business and hurt customers, Bloomberg reported.

“Operations would quickly grind to a halt”

Without the ability to pay employees, vendors, suppliers and professionals or to maintain the trading platform, the operations will quickly grind to a halt, Binance.US attorneys said Monday 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 requested the federal court to seize assets of  Binance.US, after it sued Binance entities and founder Changpeng Zhao last week, alleging “blatant disregard of US securities laws” and “years of violative conduct” that puts customer funds at risk.

Binance assures US customer assets are safe

Binance.US attorneys further argued in their court filing that US customer assets are safe and said “there is no need for the draconian relief sought by the SEC.” As reported earlier, the US SEC had filed an emergency action application for a temporary restraining order to freeze Binance.US’s assets in an attempt to protect customer funds, including through repatriation of client investments held abroad. Binance has aggressively disputed the allegations.

Proposed Bill Seeks To Fire SEC Chair

On Monday, Republican lawmaker Warren Davidson introduced the “SEC Stabilization Act” into the House of Representatives. One of the bill’s main provisions is to fire the SEC chair Gary Gensler. Along with removing the SEC chair Gary Gensler, the bill would redistribute the power between SEC chair and commissioner. Though the Republican lawmakers did not specifically mention cryptocurrencies in their statements, both the lawmakers Warren Davidason and Tom Emmer have a positive stance on crypto.