Will users be able to withdraw USD from Binance.US? | Credit: Shutterstock
- Binance.US has halted dollar deposits
- The banking partners have stated they’ll stop handling withdrawals on the exchange’s behalf
- The money held by US’s banking partners could be converted to a stablecoin
The fallout from the SEC’s civil lawsuit against Binance, the most popular cryptocurrency exchange by volume, has continued with Binance.US, the exchange’s American branch, announcing a temporary suspension of the dollar and all fiat withdrawals late on June 8.
The exchange ascribed the decision, which could go into force as early as Tuesday, June 13, 2023, to its banking partners, who have said they want to stop working with the firm on USD fiat transactions.
Binance wrote :
“As a result, in an effort to protect our customers and platform, today we are suspending USD deposits and notifying customers that our banking partners are preparing to pause fiat (USD) withdrawal channels as early as June 13, 2023. We encourage customers to take appropriate action with their USD.”
The SEC has taken to using extremely aggressive and intimidating tactics in its pursuit of an ideological campaign against the American digital asset industry. https://t.co/AZwoBOgsqS and our business partners have not been spared in the use of these tactics, which has created… pic.twitter.com/rlIe6swIoY
— Binance.US 🇺🇸 (@BinanceUS) June 9, 2023
The exchange, which is run by BAM Trading, has assured its users that it keeps one-to-one reserves for every account and that, notwithstanding the upcoming changes, all activities are presently running as usual.
The SEC’s latest filing represents legal maneuvering rather than genuine concern for https://t.co/AZwoBOgsqS customers and the safety of their assets.
The SEC has shown in bringing this case, and countless others, that its true interest lies in political grandstanding and land… https://t.co/rt2acDzzqD
— Binance.US 🇺🇸 (@BinanceUS) June 6, 2023
How To Withdraw Via ACH?
By June 13, 2023, customers are urged to withdraw their USD by bank transfer (ACH). Binance.US is stopping all dollar deposits and recurring buy orders to help with this procedure.
Binance will start delisting USD trading pairs from next week while keeping stablecoin pairs available.
The statement from Binance.US stated that “Any delays in processing withdrawals may be caused by high volume and weekend bank closures.” Additionally, cryptocurrency trading, staking, deposits, and withdrawals continue to be completely functional.
All USD trading pairings, including BTC-USD, have been announced to be suspended by Binance.US in addition to the suspension of dollar deposits and withdrawals. The company also disclosed that any USD balances kept as of June 15 might be converted into stablecoins that may be withdrawn directly from the blockchain.
In response to the SEC complaint, which Binance.US has characterized as including “unjustified civil claims,” the platform has adopted a hostile tone with the regulatory body on social media, frequently asserting the SEC’s strategies and approach to industry regulation are aggressive and uninformed.
As soon as the SEC sued Binance in March, cryptocurrency traders began withdrawing money at a rate not seen since the banking crisis.
According to blockchain data , the exchange had net outflows of almost $503 million. According to the figure, traders have taken out more than $1 billion in digital assets over this time as opposed to $546 million in deposits.
Since at least mid-March, when investors were concerned that collapsing crypto-friendly banks would destabilize crypto exchanges, this is on course to be the highest daily net outflow.
Fight Is “Far From Over”
The history of Binance.US has been particularly volatile, with Catherine Coley, a former CEO, disappearing from public view and Brian Brooks, her replacement, quitting after only a short time in office. Brooks had previously given testimony to the SEC casting doubt on the exchange’s purported independence.
Senator Cynthia Lummis, a Republican from the United States, recommitted herself to working for a supportive regulatory framework for cryptocurrency over the weekend and declared that the “fight is far from over.”
We successfully prevented @POTUS ‘ 30% digital asset mining tax from being included in the debt ceiling deal but the fight is far from over.
I am working on a regulatory framework that will allow individuals and companies to own and trade digital assets in America.
Stay tuned…
— Senator Cynthia Lummis (@SenLummis) June 10, 2023
On Twitter, a Wyoming senator reassured her fans that she is still working on the proposed regulation, which was supposed to be released in a revised form in April.
The bill is co-sponsored by Kirsten Gillibrand, a Democrat from New York, and was initially introduced last year but is expected to be reintroduced this year with minor adjustments.
However, the Responsible Financial Innovation Act is a piece of proposed legislation that arrives at a time when tensions are rising between American regulators and cryptocurrency companies.
Also, the move against Coinbase was denounced by Lummis, who claimed that the SEC had “failed to provide adequate legal guidance” and that Congress needed to enact the Lummis-Gillibrand act in order to provide a “robust legal framework” that companies could adhere to.
Winklevoss Twins Claim ‘War On Crypto’ Will Result in Dems Losing Votes
In the latest series of events, Cameron Winklevoss, a well-known cryptocurrency billionaire, claimed that the youth vote saved the American Democratic party from defeat in 2020 and that alienating them now will result in “lost votes” in the subsequent election cycle.
His brother Tyler answered:
Roe cost Republicans the mid-terms. The @SenWarren and @GaryGensler war on crypto will cost Dems the 2024 election.
— Tyler Winklevoss (@tyler) June 11, 2023
He also criticized attempts by U.S. Senator Elizabeth Warren and SEC Chairman Gary Gensler to discredit the cryptocurrency sector, warning that their actions could have disastrous repercussions for the Democratic party.
The @SenWarren and @GaryGensler war against crypto is going to alienate an entire generation of would-be Democrats.
Winning the youth vote w/ “get out the vote” is key part of Dem playbook.
Dems believe the youth vote will carry the day. pic.twitter.com/F4FQowjCVn— Cameron Winklevoss (@cameron) June 10, 2023
Winklevoss tweeted that “Millennials and GenZ have already accepted crypto,” adding that “they don’t debate crypto’s merits; and they won’t forget the value destruction Warren and Gensler have caused.”
Cameron also posted a CNN story from 2022 that said that young voters helped the Democrats win last year’s elections, saving face for the party. The existing regulatory framework may backfire for cryptocurrency entrepreneurs.
