Binance lawyers claim SEC Chair Gensler sought to advise Binance in 2019, adding intrigue to the ongoing legal battle between the two.
Binance Lawyers Argue for SEC Chair’s Recusal Amidst Lawsuit
Concerns were voiced by Binance Holdings Ltd.’s legal team about SEC Chair Gary Gensler’s potential involvement in the case just before the SEC filed suit against the cryptocurrency exchange. Binance’s legal department claims that in 2019, Gensler offered his consulting services to the firm and met with company officials and founder Changpeng Zhao for lunch in Japan.
Gensler had yet to become the SEC chair and was instead a professor at MIT at the time. As part of his duties, he presented seminars on blockchain technology to students in the university’s Sloan School of Management. After their initial meeting in Japan, Binance’s attorneys claim their client Gensler kept in touch with Binance CEO Zhao. However, the SEC has cleared Gensler and is mindful of his ethical responsibilities.
As the SEC takes more robust measures against the cryptocurrency industry, this disclosure underlines Gensler’s expanding importance in the space. The head of the SEC has stated unequivocally that he will monitor the crypto industry to verify that all transactions are legal under U.S. securities law.
Gensler’s extensive participation with Binance in the past adds intrigue to the ongoing legal dispute and highlights the pivotal position he now holds in determining regulatory measures inside the cryptocurrency industry.
Gensler Continues Crypto Crackdown with Lawsuits Industry Giants
Gary Gensler has ramped up his regulatory efforts against the cryptocurrency business after President Biden selected him to lead the Securities and Exchange Commission in 2021. Furthermore, Gensler has taken a critical stance on digital currencies, arguing that the sector doesn’t need any more digital currencies and that the crypto business model is predicated on ignoring regulations.
The SEC has recently taken legal action against Binance and its creator Changpeng Zhao, often known as CZ, for alleged violations of federal securities laws. The governing body charged Binance and BAM Trading, doing business as Binance.US, operating as an unlicensed exchange, broker, and clearing house. Moreover, SEC also claimed that various cryptocurrencies were securities, including Solana, Cardano, Polygon, and others.
Final Thoughts
Gensler’s continued crackdown on the crypto industry, targeting major players and asserting the need for compliance with securities laws, reflects the SEC’s determination to regulate the digital asset space more rigorously.
These ongoing lawsuits and regulatory actions are reshaping the crypto landscape, prompting industry participants to reassess their operations and compliance measures.