United

<ul> 
 <li>Binance Holdings and CZ have submitted a joint motion to dismiss the SEC lawsuit.</li> 
 <li>The filing states the SEC does not accuse Binance or CZ of committing fraud or harming investors.</li> 
</ul> 
Binance, the world’s largest cryptocurrency exchange, and its CEO, Changpeng Zhao, known as CZ, have jointly filed a motion to dismiss the United States Securities and Exchange Commission (SEC) lawsuit against them. The <a href="https://thenewscrypto.com/u-s-sec-pushes-to-disclose-sealed-documents-in-binance-lawsuit/" target="_blank" rel="noopener noreferrer nofollow">filing</a>, made on September 21 in the United States District Court, argues that the SEC exceeded its authority by bringing the lawsuit. 
In their 60-page petition, legal representatives for Binance and Zhao contend that the SEC failed to provide clear regulatory <a href="https://thenewscrypto.com/binance-news-secs-sealed-submission-request-in-binance-lawsuit-raises-concerns/" target="_blank" rel="noopener noreferrer nofollow">guidelines</a> for the cryptocurrency sector before initiating legal action against the exchange. Also, they argue the Securities and Exchange Commission retroactively imposed its regulatory authority over the crypto industry. 
<div class="wp-block-image"> 
 <figure class="aligncenter size-full"> 
 <img decoding="async" width="813" height="302" src="https://thenewscrypto.com/wp-content/uploads/2023/09/Binance-1.png" alt="" class="wp-image-82755" srcset="https://thenewscrypto.com/wp-content/uploads/2023/09/Binance-1.png 813w, https://thenewscrypto.com/wp-content/uploads/2023/09/Binance-1-300x111.png 300w, https://thenewscrypto.com/wp-content/uploads/2023/09/Binance-1-768x285.png 768w, https://thenewscrypto.com/wp-content/uploads/2023/09/Binance-1-150x56.png 150w" sizes="(max-width: 813px) 100vw, 813px"> 
 <figcaption class="wp-element-caption"> The joint motion to dismiss the SEC lawsuit filed by Binance Holdings and CZ (Source: <a href="https://storage.courtlistener.com/recap/gov.uscourts.dcd.256060/gov.uscourts.dcd.256060.118.0.pdf" target="_blank" rel="noopener noreferrer nofollow">CourtListener</a>) 
 </figcaption> 
 </figure> 
</div> 
Notably, the filing highlights the absence of fraud allegations, emphasizing that the “SEC does not claim that BHL or Mr. Zhao committed any fraud or harmed a single investor.” 
In June the SEC filed a lawsuit against Binance, its US-based affiliate Binance.US, and CZ, which includes allegations of operating unregistered exchanges, broker-dealers, and clearing agencies. 
However, both Binance and Binance.US have publicly denied these allegations. But they have experienced a significant decline in market share in the wake of increased regulatory scrutiny. This decline has also led to changes within the organization, including the resignation of Binance.US’s <a href="https://thenewscrypto.com/crises-at-binance-as-top-executives-continue-to-leave/" target="_blank" rel="noopener noreferrer nofollow">CEO and layoffs</a> affecting approximately one-third of the platform’s workforce. 
The outcome of this legal battle will be crucial. Also, it may have far-reaching implications for the cryptocurrency sector and the regulatory framework surrounding it.

Binance and CZ Seek SEC Lawsuit Dismissing, Call it Regulatory Overreach

TheNewsCrypto

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