Binance Vs SEC: Gensler's Unexpected Role in Crypto Battle

Amidst a lawsuit from the SEC, Binance lawyers argue that SEC Chair Gary Gensler should recuse himself  due to prior connections with the exchange. In an earlier role, Gensler had offered to advise Binance on cryptocurrency regulation, according to the exchange's legal team.

in 2019, Binance's Changpeng "CZ" Zhao and Gensler met in Japan, discussing the BNB token and a potential U.S. Binance exchange. Post-meeting, Zhao assumed Gensler would act as an informal advisor, a role Gensler himself suggested, the counsel claims.

Binance's counsel insists Gensler's involvement in the case is inappropriate, given his previous interactions with Zhao. It's unclear whether Gensler has recused himself, despite demands from Binance lawyers. Prior to a 2019 House Financial Services Committee testimony, Gensler reportedly sought Zhao's advice on his statement.

Reports had suggested that Binance and other firms had approached Gensler for advisory roles, but the new letter suggests Gensler may have initiated the proposition.

Following the SEC's lawsuit against Binance, a temporary restraining order was sought to freeze Binance US assets. Both parties return to court on June 13 regarding the order. Meanwhile, the SEC has been ordered to explain its refusal to establish rules for crypto, responding to a petition from Coinbase on June 14.