In the ongoing legal battle between Binance and the United States Securities and Exchange Commission (SEC), Binance’s legal team has once again emphasized the need for SEC Chair Gary Gensler to remove himself from the agency’s case. The lawyers argue that Gensler’s previous interactions and attempt to secure a job with Binance create a potential conflict of interest, media reports said.
In a letter dated June 4, 2023, Binance’s lawyers reiterated concerns initially raised in February. The exchange claims that Gensler should have recused himself from the case due to his prior engagement with Binance and the possibility of him being a material witness.
According to Binance, Gensler had expressed interest in advising the exchange before his government appointment. In March 2019, Gensler had a lunch meeting with Binance CEO Changpeng Zhao in Japan, during which they discussed BNB, the exchange’s native cryptocurrency, and the potential launch of a US-based subsidiary.
Binance further asserted that Zhao continued to stay in touch with Gensler, believing him to be an informal advisor to the exchange. The company also highlighted that Gensler interviewed Zhao for his cryptocurrency course at the Massachusetts Institute of Technology (MIT). Additionally, before Gensler’s appearance before the House Financial Services Committee in 2019, he allegedly shared an advanced copy of his testimony with Zhao.
Citing these reasons, Binance has called for Gensler’s recusal. The exchange claims that the SEC has not yet addressed these concerns raised by Binance.
In response to Binance’s assertions, Gensler has previously testified that he does not serve as an advisor to any cryptocurrency exchange. However, the repeated allegations have brought his past interactions with Binance into the spotlight, raising questions about potential conflicts of interest.
The outcome of Binance’s request for Gensler’s recusal remains uncertain, as the SEC has not yet responded to the exchange’s claims. The ongoing legal proceedings between Binance and the SEC continue to attract attention within the cryptocurrency industry and beyond as market participants closely monitor the potential implications for regulating digital assets.
As the case unfolds, the focus will shift to whether the SEC will address Binance’s concerns and whether Gensler’s involvement will impact the agency’s actions against the cryptocurrency exchange. Both sides are likely to engage in further legal arguments as they seek a resolution in this high-profile case that could significantly impact the regulatory landscape surrounding cryptocurrencies in the United States.
