The latest update on the Binance.US Vs. SEC face-off has it that BinanceUS has restored its USD operations. The company, earlier today, revealed that it had completed almost all of the requests for delayed USD withdrawals. A formal statement released on the 23rd of June says that those waiting for their withdrawals to be processed can now do so easily.
While explaining the new operation introduced in the latest update, Binance.US said it worked with its banking partners to find a solution. Before now, users of the exchange have grown impatient due to the exchange’s lengthy processing times for USD withdrawals. This change will resolve some challenges and enhance the overall user experience.
The latest statement also clearly stated that the biggest stablecoin by market cap, USDT, continues to depend on Binance.US. As of the time of this report, the United States dollar-pegged currency, USDT, has dropped to 0.96 versus the US dollar on the exchange, a situation analysts say it’s bad news for merchants who depend on stablecoins for their trading operations.
It was also gathered that Binance.US has also unveiled new USDT pairs for several digital assets despite this new development. These new cryptocurrencies include DAI, Ankr (ANKR), ICON (ICX), Ravencoin (RVN), Waves (WAVES), Hedera (HBAR), Nano (XNO), Tez (XTZ), Dash (DASH), IOTA, and Zilliqa (ZIL). It is anticipated that this action would improve the liquidity of these assets and draw more traders to the exchange.
Binance.US Petitions SEC, As Cryptocurrency Community Reacts
Binance.US has also submitted a motion against the US Securities and Exchange Commission (SEC) in addition to these events. The SEC has claimed that Binance.US has “commingled” client assets, which is against the law, according to the motion. Binance.US has refuted these charges, and the motion aims to make sense of the SEC’s conflicting pronouncements on the subject.
Binance has previously been the subject of regulatory agencies’ investigation. The SEC and other regulatory agencies have filed lawsuits against the exchange for allegedly breaking securities laws. Although the SEC referred to them as securities in the litigation against Binance and Coinbase, Binance.US has kept certain digital assets, including Cardano, Solana, and Polygon (MATIC).
The cryptocurrency community has reacted to Binance.US’s news with mixed feelings. One section of the community has expressed concern about the depegging of USDT, while some have applauded the exchange for fixing the USD withdrawal concerns.
Further investigation revealed that some other traders had decided to transfer their money to other exchanges that provide more reliable stablecoins in response to the news. Others have applauded Binance.US for launching new USDT pairs, boosting these assets’ liquidity and attracting more traders to the exchange.
Cryptocurrency Community Commends Binance Actions, USDT Depegging
Varinder Singh, a cryptocurrency analyst with CoinGape, says that the news from Binance.US represents a major advancement for the cryptocurrency community as a whole. Users will be relieved that the problems with USD withdrawal have been resolved, and introducing new USDT pairs is anticipated to boost the liquidity of numerous digital assets. Concerns have been raised about the debugging of USDT, and it is still being determined how this would influence the general stability of the cryptocurrency market.
Singh explained that the SEC’s response to Binance.US’s request is important because it clarifies the legal framework governing cryptocurrencies and their categorization as securities. He added that it would be fascinating to see how the lawsuit progresses in the upcoming months because this might have significant ramifications for the entire Bitcoin sector.
Recall that BinanceUS suspended the USDT operations earlier this month when the regulatory authorities dragged the company, and its CEO, Changpeng Zhao, to court for manipulating its clients. Coinbase was also sued within the same week for similar charges and SEC released a statement on Thursday, saying that they support freezing Binance’s assets, which is also contained in their court filing against the company.
Binance.US, in its official statement, said that SEC’s activities have been harsh to the company’s operations. They accused them of intimidation and deploying aggressive methods in achieving what they called a “philosophical campaign” against the United States cryptocurrency industry.