The SEC (Securities and Exchange Commission)’s relentless crackdown on crypto seems to not be over.

Earlier today (5th June 2022), a report by Bloomberg notified that the SEC has sued Binance, as well as notable CEO Changpeng “CZ” Zhao, for breaking U.S. rules. More specifically, they are accusing them of violating U.S. derivatives rules, including providing trading services for “securities” such as BNB and SOL.

A full link to the document can be found here.

It seems that the Securities and Exchange Commission (SEC) and it’s rigorous crackdown on the cryptocurrency is still far from a conclusion.

According to Bloomberg, the SEC has taken legal action against Binance, one of the prominent cryptocurrency exchanges, along with its CEO Changpeng “CZ” Zhao, for allegedly contravening U.S. regulations.

The specific allegations raised against them pertain to the violation of U.S. derivatives rules.

4.

Our team is all standing by, ensuring systems are stable, including withdrawals, and deposits.

We will issue a response once we see the compliant. Haven't seen it yet. Media gets the info before we do.

🙏
— CZ 🔶 Binance (@cz_binance) June 5, 2023

While Binance’s CEO has yet to confirm whether these allegations are true, the recent surge in cases initiated by the SEC against various entities within the crypto industry means that a potential lawsuit would not be entirely surprising.

SEC Yet To Respond To Coinbase CEO Brian Armstrong

Following a Well’s notice given to Coinbase regarding an “undefined portion of” digital assets and other services such as Coinbase Earn, CEO Brian Armstrong shot back at the commission, demanding further regulatory clarity around Web3.

1/ Today Coinbase received a Wells notice from the SEC focused on staking and asset listings. A Wells notice typically precedes an enforcement action.
— Brian Armstrong 🛡️ (@brian_armstrong) March 22, 2023

Despite the SEC continuing to take action on other notable cryptocurrency entities and figureheads following the collapse of FTX, they have yet to officially comment of Coinbase’s response.

This was likely the foundation for Coinbase setting up an International Exchange, which is based outside the United States in the Island Nation of Bermuda.

This is a developing story. More details will be added as further information is released.

Also Read: Why The SEC’s Crackdown On Crypto Could Benefit These 3 Stablecoins

[Editor’s Note: This article does not represent financial advice. Please do your research before investing.]

Featured Image Credit: ChainDebrief