Binance faces legal action from the SEC following the CFTC.
On the 5th (local time), the U.S. Securities and Exchange Commission (SEC) officially filed a lawsuit against Binance, the world's largest cryptocurrency exchange, and Binance CEO Changpeng Zhao, accusing them of violating securities laws.
In the complaint submitted to the U.S. Federal Court, the SEC stated, "Binance violated investor protection rules by operating and selling unregistered exchanges and securities within the U.S."
(omitted)
Meanwhile, just two months after the U.S. Commodity Futures Trading Commission (CFTC) filed a lawsuit against Binance and CEO Zhao for violations of the Commodity Exchange Act (CEA), the SEC has now charged them with securities law violations, signaling an intensifying battle over jurisdiction in the cryptocurrency market.
Hyeonsu “Elliot” Jin, managing partner at Decent Law Firm, commented, "From the moment the CFTC filed a lawsuit against Binance and CEO Zhao for violating the Commodity Exchange Act, it was only a matter of time before the SEC followed suit. If the court were to rule on the commodity nature of virtual assets first, everything could go awry for the SEC. They likely determined that they could not afford to lose authority and jurisdiction over the virtual asset market."
