A week after the Securities and Exchange Commission (SEC) filed a civil enforcement action against Binance.US, the crypto exchange has hit back, stating that all of the regulator’s claims are invalid.

Binance argued against the SEC for a temporary restraining order on the company, also known as BAM Trading, and said that such an action would have “destructive consequences,” which will subsequently affect the platform’s ability to even fund its defense to this action.

Binance Hits Back

In its latest filing, Binance’s US affiliate argued that the agency has not identified a single security trading on BAM’s platform. The request for a restraining order would primarily harm BAM’s customers, effectively put BAM out of business, and subsequently, prevent the company from defending itself in this litigation.

Deeming the SEC’s request as “draconian and unduly burdensome,” Binance.US said the move would hinder the ability to pay its employees, vendors, suppliers, and professionals in the ordinary course of business and to maintain its technology platform.

“The SEC suggests that it is a foregone conclusion that cryptocurrency is a security, but that is not the case. That numerous cryptocurrency exchanges, including BAM, have operated in the United States for years without interference by the SEC belies the claim that they are clearly covered by the securities laws.”

Binance.US further said the SEC’s motion is “riddled with mistakes” and omissions to inappropriately deem that BAM customer assets are “not secure.”

Cooperation With SEC

Binance.US claimed that it had made significant efforts over more than three years to cooperate with the SEC’s investigation. BAM Trading was first served with a subpoena on December 17, 2020, that resulted in over two years of document production as well as a series of follow-up requests.

This included additional subpoenas issued on five occasions betw