BINANCE.US CALLS SECS COURT REQUESTS UNREASONABLE IN NEW FILING

Last updated: June 19, 2025, 19:59 | Written by: Brian Armstrong

The ongoing legal battle between cryptocurrency exchange Binance.US and the United States Securities and Exchange Commission (SEC) has taken another turn, with Binance.US vehemently objecting to the SEC's latest requests for information.In a recent filing, the American arm of the global crypto giant slammed the SEC's demands as ""unreasonable and unduly burdensome,"" marking a significant escalation in the dispute.This development comes amidst the SEC's broader crackdown on the crypto industry, raising concerns about regulatory overreach and the future of cryptocurrency operations in the United States. Binance.US calls SEC s court requests unreasonable in new filing Binance.US has responded to the motion to compel and reply by the United States Securities and Exchange Commission, calling most of the SEC s requests unreasonable and unduly burdensome.The core of the disagreement lies in the scope and intensity of the SEC's information requests, which Binance.US argues are excessive and go beyond the terms of a previously agreed-upon consent order. On Sept. 12, attorneys for BAM Trading Services, which operates the Binance.US cryptocurrency exchange, filed sealed documents in opposition to the U.S. SEC seeking additional details from Binance.US.This article delves into the details of the filing, explores the SEC's allegations, and examines the potential implications for Binance.US, the wider cryptocurrency market, and the regulatory landscape.

Binance.US Responds to SEC's Motion to Compel

On September 12th, attorneys representing BAM Trading Services, the entity that operates the Binance.US cryptocurrency exchange, officially submitted court documents opposing the SEC's motion to compel. Binance.US has responded to the motion to compel and reply by the United States Securities and Exchange Commission, calling most of the SEC s requests unreasonable and unduly burdensome. filedThe defendants argued that the SEC s requests for production and interrogatories are overly broad, unduly burdensome and beyond the scope of the consent order.These documents, filed under seal, outline Binance.US's position that the SEC's demands are excessive and unjustified.The filing argues that the depositions requested by the Commission are overboard and place an unreasonable burden on the exchange's resources and operations.

The essence of Binance.US's argument is that the SEC's requests are not proportionate to the scope of the investigation and delve into areas that are not directly related to the initial allegations. [ Octo ] Coinbase pushes for court intervention to obtain SEC documents on crypto regulations Regulation [ Octo ] Trump-backed platform s crypto token sale flatlines at $10M amid site jitters NFTThis disagreement highlights a fundamental tension between regulatory oversight and the practicalities of operating a complex cryptocurrency exchange.Binance.US contends that complying with the SEC's demands would require a significant diversion of resources, potentially hindering its ability to serve its customers and maintain its operations.

Key Arguments Against the SEC's Demands

The recent filing by BAM Trading Services presents a strong case against the SEC's motion to compel. The SEC alleged Binance.US was not abiding by the terms of a consent order in its case against the U.S.-based crypto exchange and its global parent. Binance.US did not prove to the SEC'sHere's a breakdown of the central arguments:

Undue Burden: Binance.US asserts that the sheer volume of information requested by the SEC is excessively burdensome.The exchange argues that compiling and providing this data would require a significant amount of time, resources, and personnel, potentially disrupting its operations.
Overly Broad Scope: The filing claims that the SEC's requests extend beyond the scope of the original allegations and the consent order. Binance.US has responded to the motion to compel and reply by the United States Securities and Exchange Commission (SEC), calling Binance.US calls SEC s court requests 'unreasonable' in new filingBinance.US believes that the SEC is attempting to conduct a fishing expedition, seeking information that is not relevant to the specific issues at hand.
Unreasonableness: Binance.US argues that the SEC's requests are simply unreasonable given the circumstances. Rewrite and expand this content to 700 words Binance.US has responded to the motion to compel and reply by the United States Securities and Exchange Commission (SEC), calling most of the SEC s requests unreasonable and unduly burdensome. Attorneys of BAM Trading Services, which operates Binance.US cryptocurrency exchange, on Sept. 12 filed sealed documents for oppositionThe exchange has already provided a substantial amount of information to the SEC and believes that the additional demands are unnecessary and unwarranted.

What is a Motion to Compel?

A motion to compel is a legal request made to a court to force an opposing party to comply with a discovery request.In this case, the SEC filed a motion to compel Binance.US to provide additional information and documentation related to the investigation. Binance.US, the American arm of the global cryptocurrency exchange, has slammed the United States Securities and Exchange Commission's (SEC) requests as unreasonable and unduly burdensome in its recent response to a motion. This strongly worded filing arrives on the heels of Binance and the SEC agreeing on a joint motion to file confidential information underThe motion is a crucial step in the litigation process, as it allows parties to gather evidence and build their cases.

What is a Consent Order?

A consent order is an agreement between two parties that is approved by a court. Binance.US has responded to the motion to compel and reply by the United States Securities and Exchange Commission (SEC), calling most of the SEC s requests unreasonable and unduly burdensome.In this case, Binance and the SEC previously agreed on a joint motion to file confidential information under seal. Binance.US has responded to the motion to compel and reply by the United States Securities and Exchange Commission, calling most of the SEC s requests unreasonable and unduly burdensome. On Sept. 12, attorneys for BAM Trading Services, which operHowever, the SEC alleges that Binance.US has not fully complied with the terms of the consent order, leading to the current dispute.

SEC's Allegations Against Binance.US

The SEC's case against Binance entities and its founder, Changpeng Zhao, is multifaceted and includes a range of serious allegations. Binance.US calls SEC s court requests unreasonable in new filing Binance.US Responds to SEC Motion to Compel In response to a motion to compel and reply by the United States Securities and Exchange Commission, BAM Trading Services, which operates the Binance.US cryptocurrency exchange, has argued that most of the SEC s requests areIn June 2025, the SEC filed 13 charges against Binance, alleging that the exchange operated an unregistered securities exchange, offered unregistered securities, and commingled customer funds.These allegations paint a picture of serious regulatory violations and raise significant concerns about investor protection.

Specifically, the SEC alleges that Binance.US misled investors about its controls and oversight, failed to prevent manipulative trading practices, and improperly transferred customer funds to other entities.The SEC also claims that Binance.US did not adequately disclose the risks associated with investing in cryptocurrencies on its platform.

Potential Implications for Binance.US and the Crypto Market

The outcome of this legal battle could have far-reaching implications for Binance.US, the broader cryptocurrency market, and the future of crypto regulation in the United States.If the court sides with the SEC, Binance.US could be forced to comply with the SEC's demands, potentially facing significant operational disruptions and financial penalties.Conversely, if the court rules in favor of Binance.US, it could send a message to the SEC that its regulatory approach is overly aggressive and that cryptocurrency exchanges should not be subjected to unreasonable demands.

Impact on Binance.US: A negative ruling could force Binance.US to significantly alter its operations, potentially limiting its ability to offer certain products and services. Binance.US calls SEC s court requests unreasonable in new filing . Binance said the SEC s requests are unduly burdensome soon after the parties agreed on a joint motion to file confidential information under seal. 904 Total views 22 Total shares Listen to articleIt could also damage the exchange's reputation and erode customer trust.
Impact on the Crypto Market: The outcome of this case could set a precedent for how other cryptocurrency exchanges are regulated in the United States. Binance said the SEC s requests are unduly burdensome soon after the parties agreed on a joint motion to file confidential information under seal. Binance.US has responded to the motion to compel and reply by the United States Securities and Exchange Commission, calling most of the SEC s requests unreasonable and unduly burdensome. On Sept. 12, attorneys for BAM TradingA victory for the SEC could embolden the agency to pursue similar actions against other exchanges, while a victory for Binance.US could encourage a more collaborative approach to regulation.
Impact on Crypto Regulation: This legal battle highlights the ongoing uncertainty surrounding crypto regulation in the United States. Binance.US calls SEC s court requests unreasonable in new filing Binance said the SEC s requests are unduly burdensome soon after the parties agreed on a joint motion to fileCongress is currently working on legislation to provide greater clarity on the regulatory status of cryptocurrencies, but the outcome of those efforts remains uncertain.

Expert Analysis and Perspectives

Industry experts are closely watching the legal battle between Binance.US and the SEC, recognizing its potential to shape the future of the cryptocurrency market.Many analysts believe that the SEC is attempting to assert its authority over the crypto industry, while others argue that the SEC is simply fulfilling its mandate to protect investors and ensure market integrity.

Some experts have raised concerns about the SEC's approach, arguing that its regulations are too vague and that the agency is unfairly targeting cryptocurrency exchanges.Others have defended the SEC's actions, arguing that strong regulation is necessary to prevent fraud and protect consumers. Binance.US has called the compel and reply motion by the Securities and Exchange Commission (SEC) unreasonable and unduly burdensome. According to court documents filed on Sept. 12 by BAM Trading Services, the legal entity of Binance.US, the exchange claims the depositions requested by the Commission are overboard.The lack of clear regulatory guidelines has created confusion and uncertainty for businesses operating in the crypto space.

It's important to note that the regulatory landscape surrounding cryptocurrencies is still evolving.Different countries and jurisdictions have adopted different approaches to regulating the industry, creating a complex and fragmented global regulatory environment.

The Importance of Regulatory Clarity

The ongoing dispute between Binance.US and the SEC underscores the urgent need for greater regulatory clarity in the cryptocurrency industry. Binance.US calls SEC s court requests 'unreasonable' in new filing Binance said the SEC s requests are unduly burdensome soon after the parties agreed on a joint motion to file confidential information under seal.Clear and consistent regulations are essential for fostering innovation, protecting investors, and ensuring the long-term stability of the market. Today, 12 September, attorneys representing BAM Trading Services, the operator of Binance.US, submitted court documents opposing the SEC s request for more details from the exchange. It comes after the SEC filed 13 charges against Binance entities and its founder Changpeng Zhao in June 2025. The charges included a range of allegations, suchWithout such clarity, cryptocurrency businesses will continue to face uncertainty and legal challenges, potentially stifling growth and innovation.

The lack of clarity has also created opportunities for bad actors to exploit loopholes and engage in fraudulent activities.Strong regulation can help to level the playing field, protect consumers, and promote responsible innovation in the crypto space.

What's Next for Binance.US and the SEC?

The legal battle between Binance.US and the SEC is likely to continue for some time. Binance said the SEC s requests are unduly burdensome soon after the parties agreed on a joint motion to file confidential Binance.US calls SEC s court requests 'unreasonable' in new filing - XBT.MarketThe court will need to review the filings from both sides and determine whether the SEC's requests are reasonable and justified.It is also possible that the parties could reach a settlement agreement, resolving the dispute without further litigation.

In the meantime, Binance.US will continue to operate its cryptocurrency exchange, serving its customers and complying with all applicable laws and regulations.The company is committed to working with regulators to ensure a safe and compliant environment for its users.However, its ability to continue doing so will depend heavily on the outcome of the legal proceedings and the regulatory environment.

Frequently Asked Questions

Here are some frequently asked questions related to the Binance.US and SEC dispute:

What are the main allegations against Binance.US? The SEC alleges that Binance.US operated an unregistered securities exchange, offered unregistered securities, and commingled customer funds.
What is Binance.US's response to the SEC's allegations? Binance.US denies the SEC's allegations and argues that the SEC's requests for information are unreasonable and unduly burdensome.
What is a motion to compel? A motion to compel is a legal request made to a court to force an opposing party to comply with a discovery request.
What is a consent order? A consent order is an agreement between two parties that is approved by a court.
What are the potential implications of this case for the crypto market? The outcome of this case could set a precedent for how other cryptocurrency exchanges are regulated in the United States.
Why is regulatory clarity important for the crypto industry? Clear and consistent regulations are essential for fostering innovation, protecting investors, and ensuring the long-term stability of the market.

Conclusion: A Critical Juncture for Crypto Regulation

The clash between Binance.US and the SEC represents a pivotal moment for the cryptocurrency industry in the United States.The outcome of this legal battle will not only determine the fate of Binance.US but also shape the future of crypto regulation and innovation.The core issue at stake is the balance between regulatory oversight and the need to foster a dynamic and innovative cryptocurrency ecosystem.By calling the SEC's court requests unreasonable, Binance.US is signaling its willingness to fight for what it believes is a fair and proportionate regulatory approach.

The need for clear and consistent regulations has never been more apparent.As the cryptocurrency market continues to evolve, regulators must work collaboratively with industry stakeholders to develop a framework that promotes innovation, protects investors, and ensures the long-term stability of the market.The stakes are high, and the decisions made in this case will have a lasting impact on the future of cryptocurrency in the United States and beyond.