Binance has requested that the Securities and Exchange Commission (SEC) recuse its Chair, Gary Gensler, from the ongoing investigation into the exchange.
In a letter filed with the court, Binance’s lawyers allege that Gensler has a conflict of interest in the case due to his previous involvement with Binance.
In particular, the lawyers allege that Gensler offered to serve as an informal advisor to Binance in 2019 and that he shared a draft of his testimony before Congress with Binance for feedback.
The lawyers also allege that Gensler has made public statements that have been critical of Binance and other cryptocurrency exchanges. They argue that these statements create the appearance of bias and that they could prejudice the outcome of the investigation.
The SEC has not yet responded to Binance’s request for recusal. The next hearing in the case is scheduled for June 13.
The implications of Binance‘s request for recusal are significant. If Gensler is recused, it would mean that the SEC would need to appoint a new lead investigator in the case.
This could delay the investigation and could also make it more difficult for the SEC to build a strong case against Binance.
The request for recusal is also significant because it highlights the growing tensions between the cryptocurrency industry and the SEC.
The SEC has been increasingly aggressive in its enforcement of securities laws against cryptocurrency companies. Binance is one of the largest cryptocurrency exchanges in the world, and its case could have a significant impact on the future of the cryptocurrency industry.