Binance, one of the largest cryptocurrency exchanges, has recently found itself in a legal battle with the Securities and Exchange Commission (SEC). Amidst this conflict, lawyers for Binance have revealed that SEC Chairman Gary Gensler once offered to serve as an "informal advisor" to their platform. This article delves into the details of this allegation, its implications, and the ongoing legal dispute between the SEC and Binance.
Katelyn Chow
SEC Chairman Gary Gensler's Connection to Binance
In a recent development, Binance's lawyers have claimed that SEC Chairman Gary Gensler previously acknowledged the regulatory uncertainty around cryptocurrencies and even offered to serve as an advisor to Binance. This revelation has raised questions about Gensler's impartiality in the ongoing legal case between the SEC and Binance.
According to Binance's counsel, CZ and Gensler had an in-person lunch meeting in Japan back in March 2019. During this meeting, the two discussed the BNB token and the possibility of Binance opening an exchange in the U.S. This meeting indicates that there has been a history of interaction between Gensler and Binance, which may have implications for the current legal dispute.
Following their lunch meeting, Gensler and CZ continued to stay in touch. Binance's lawyers have stated that Gensler offered to serve as an informal advisor to the exchange, a proposal that was seemingly accepted by CZ. This alleged offer has now become a point of contention in the ongoing legal battle between Binance and the SEC.
Binance's Counsel Requests Gensler's Recusal
Given their history and Gensler's alleged offer to be an informal advisor, Binance's counsel has argued that he should recuse himself from the case. They have stated that Gensler's involvement in the matter may make him a material fact witness, which would further warrant his recusal. However, the SEC has not confirmed whether Gensler will be recused from the case or not.
SEC's Suit Against Binance
The SEC recently launched a suit against Binance, accusing the platform of offering unregistered securities to U.S. investors. This suit has sparked a heated legal battle between the two parties, with Binance's lawyers now raising questions about Gensler's impartiality and his alleged offer to serve as an informal advisor.