After several months of litigation, the case between Binance and the SEC is far from over. The SEC has taken legal action against the world’s largest crypto exchange. But Binance has challenged the SEC’s authority by filing a motion to dismiss the case against them. What exactly ...
After several months of litigation, the case between Binance and the SEC is far from over. The SEC has taken legal action against the world’s largest crypto exchange. But Binance has challenged the SEC’s authority by filing a motion to dismiss the case against them. What exactly is the status of the lawsuit? Focus on the latest news on the Binance v SEC case.
According to Binance, the SEC exceeded its powers
To recap, the SEC filed suit against Binance in June, but encountered a number of obstacles. It was unable to obtain authorization to investigate the software of Binance.US, the US branch of the crypto giant since June. However, this has not prevented the regulator from pursuing the exchange on a number of charges. These include the irregular operation of crypto exchanges, the falsified presentation of transaction controls on Binance.US and the offer for sale of unregistered securities.
Recently, Binance and its CEO Changpeng Zhao (CZ) filed a motion to dismiss the SEC’s complaint. They argue in their action that the commission exceeded its powers in suing them. But the Securities and Exchange Commission opposed the motion to dismiss filed by the crypto company.
Regulator opposes crypto exchange’s motion to dismiss
The SEC’s arguments include violations of securities laws and alleged manipulation of the Howey test. It claims that Binance marketed and sold BUSD as an investment contract. Yet the exchange asserts that the BUSD crypto was not offered as an investment contract since there is no possibility of profit. After all, its value must remain at one dollar.
The SEC adds that the Binance defendants relied on Ripple’s conclusion. The latter determined that certain sales of buy and sell transactions did not involve securities. This is because buyers cannot know whether their payments were going to Ripple or any other crypto XRP seller.