Former SEC official says Binance could face more charges
John Reed Stark shared new findings in the US vs Binance settlement and noted that a big problem for Binance exchange is on the path.
As we know, last month Binance, the top crypto exchange, decided to settle its case with the US authorities for a $4.3 billion fine. Binance co-founder Changpeng Zhao (CZ) resigned from the CEO role as a part of the settlement.
People think that all the hurdles for this crypto firm have been ended but former SEC official John Reed Stark believes that more big problems are coming for this crypto firm and that will create a highly challenging situation for Binance to run its business.
As per reports, the case between Binance & the U.S. The Department of Justice (DOJ) has been almost over but cases with the Securities and Exchange Commission (SEC) and the Commodities Futures Trading Commission (CFTC) are still active and it will take significant time to end.
John Reed shared his opinion on this case and said that the SEC body dragged some points from the Binance vs Doj settlement to enforce Binance with alleged charges strictly.
According to this former SEC official, The level of monitoring from the DOJ and Financial Crimes Enforcement Network (FinCEN) post-settlement is unusual for Binance.
John Reed shared some new documents related to the Binance case, which were not published by the US authorities earlier. Those documents showed that the DOJ demanded Binance follow strict rules, which would not be healthy for the growth of Binance.
Reed predicted that intense regulatory monitoring in Binance & lack of transparency between Binance & US authorities may lead to the failure of the deal.
Alongside these examinations by John Reed, here we can see that the SEC’s charges against the Binance exchange are not very big because the SEC body already sued many Crypto companies e.g. Bittrex, Coinbase, and Kraken. All these crypto companies provide services under a fully regulatory environment but still face legal action.
As all of us know very well the SEC body regulates the crypto sector forcibly under traditional securities laws, which are not applicable on this innovative sector. So there are huge chance that Binance will take a huge time to fight against SEC’s charges, instead of direct settlement.
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