The battle between the Securities and Exchange Commission (SEC) and cryptocurrencies intensifies with lawsuits filed against Binance and Coinbase. However, new revelations emerge that could change the course of the case.
According to Binance’s lawyers, SEC Chairman Gary Gensler offered himself as counsel to the company in 2019. This raises questions about a potential conflict of interest and has led Binance to seek Gensler’s recusal in the case. Let’s see the details of this controversial claim and its possible impact on the current situation.
Meetings between Gensler and Zhao in 2019: A covert offer?
Binance’s lawyers filed documents with the SEC revealing that Gary Gensler met with Changpeng Zhao, founder of Binance, in March 2019 in Japan. During the meeting, the Binance Coin (BNB) token and the possibility of Binance opening a subsidiary in the United States were discussed.
According to Binance’s defense, both parties maintained contact after the meeting, with Zhao understanding that Gensler was willing to act as an informal adviser to the company. In addition, Gensler sent Zhao a copy of his testimony ahead of a hearing in which he spoke about the need to establish rules to protect client funds in projects like Facebook’s Libra and Calibra.
The Gensler Recusal: A Call for Fairness?
Binance argues that due to his history of collaboration with the company, Gensler should be disqualified from the case. So far, the SEC has not confirmed whether Gensler has recused himself, raising questions about his impartiality in this matter.
Binance’s lawyers claim that the Commission has not provided any convincing explanation as to why Gensler has not been disqualified. These developments cast a shadow over the SEC’s approach to Binance and raise questions about the regulator’s objectivity in relation to cryptocurrencies.
The impact on the cryptocurrency industry and Binance shares.
Binance’s accusations against Gensler and the SEC have created an environment of uncertainty in the cryptocurrency industry. If Gensler is confirmed to have had a close link to Binance in the past, this could affect the SEC’s perception of fairness in its dealings with the firm.
Additionally, Binance has expressed disappointment at the SEC’s lawsuit and has announced its intention to join other cryptocurrency projects that are also facing enforcement action from the regulator. This could trigger a more aggressive response from the industry and raise new questions about the regulation of cryptocurrencies in general.
Binance’s allegations against SEC Chairman Gary Gensler for offering to offer counsel in 2019 have added a new layer of complexity to the battle between the regulator and cryptocurrencies. The revelation that Gensler met with the Binance founder and sent testimony from him before a hearing raises serious questions about a potential conflict of interest and the impartiality of the SEC in the case.
