Goodbye Binance.US? | Circle Begs For Regulation

THE BINANCE CRUSADE

Binance may be forced to leave American shores for good. The Securities and Exchange Commission is suing the world’s largest cryptocurrency exchange, its U.S. affiliate and founder Changpeng Zhao. The SEC’s 13-count suit, filed in the U.S. District Court for the District of Columbia, alleges that the entities and Zhao “enriched themselves by billions of dollars while placing investors’ assets at significant risk” and “designed and implemented a multi-step plan to surreptitiously evade U.S. laws.”

The agency also asked a judge to freeze the assets of Binance.US and repatriate crypto and conventional currencies held by its customers. As a result, Binance.US said it would suspend deposits and withdrawals in U.S. dollars. In a message to customers, the company said it was “taking necessary actions” in a transition to a crypto-only exchange after the SEC suit discouraged banks from working with it.

SUITS AGAINST EXCHANGES IDENTIFY MORE THAN A DOZEN OF CRYPTO TOKENS AS SECURITIES

As with Binance on Monday, the SEC complained that Coinbase, the largest crypto exchange in the U.S., had failed to register as a securities exchange, broker and clearing house as required by law.

In both cases, the complaints cited more than a dozen major coins as assets that fall under its purview. Among them are leading tokens such as Binance’s bnb, Cardano’s ada, sol on the Solana blockchain and Polygon’s matic.

“Instead of publishing a clear rule book, the SEC has taken a regulation by enforcement approach that is harming America. So if we need to avail ourselves of the courts to get clarity, so be it,” Coinbase CEO Brian Armstrong responded in a Twitter post on Tuesday.

Source: Forbes Digital Assets. Prices as of 4:00 p.m. on June 9, 2023.

TAXBIT GETS NEW CEO

Lindsey Argalas, chief operating officer at crypto accounting firm TaxBit, has been named its new chief executive. Cofounder and current CEO Austin Woodward will step into the role of chairman.

Argalas’ appointment marks a milestone for the company as she becomes one of the few female CEOs of major crypto enterprises only one year after she joined TaxBit. The Draper, Utah-based firm is the crypto audit partner for the Internal Revenue Service (IRS) and is the only crypto newcomer in this year’s Forbes Fintech 50 list. Its business with the agency ensures that companies holding digital assets are tax compliant in the face of changing IRS guidance.

ELSEWHERE

Justice Department Charges Two As Mt. Gox Hackers [Axios]

Crypto.com Winding Down U.S. Institutional Business [CoinDesk]

Binance Lawyers Allege SEC Chair Gensler Offered To Serve As Advisor To Crypto Company In 2019 [CNBC]