Binance’s SEC Lawsuit Faces Pushback from Regulator
The U.S. Securities and Exchange Commission (SEC) has responded to Binance’s attempts to dismiss the lawsuit filed against it, stating that the cryptocurrency exchange’s arguments lack legal basis.
SEC Challenges Binance’s Motion to Dismiss
The SEC has strongly opposed Binance and its U.S. counterpart Binance.US’s motion to dismiss the lawsuit, claiming that the motion relies on distorted interpretations of federal law and precedents. The SEC initially sued Binance in June, along with Coinbase, alleging that both platforms offered unregistered securities to investors.
Binance’s Defense and SEC’s Response
Binance, and its founder Changpeng “CZ” Zhao argued in their motion to dismiss that the SEC was overstepping its authority and had not provided sufficient evidence of securities law violations. However, the SEC countered in its filing that Binance’s argument would undermine decades of established legal precedent and create a new framework unsupported by existing law.
SEC Allegations Against Binance
The SEC accused Binance of violating securities law through the sale of its BNB token during an initial coin offering and the sale of Binance USD (BUSD) as an investment contract. The agency also claimed that Binance’s staking and earn programs violated federal securities laws.
SEC Rejects ”Major Questions Doctrine” Argument
The SEC also dismissed Binance’s argument that its lawsuit violated the “Major Questions Doctrine,” a recent Supreme Court ruling often cited by crypto companies facing SEC litigation. The regulator stated that this doctrine does not justify precluding the SEC from enforcing securities laws enacted by Congress.
Conclusion
The SEC’s response to Binance’s motion to dismiss highlights the regulatory agency’s determination to hold cryptocurrency exchanges accountable for potential securities law violations. The outcome of this lawsuit will have significant implications for the crypto industry as a whole.
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