Chair

Gary

Rise

<p>In a lengthy hearing in Washington DC, a federal judge in the United States raised inquiries with the U.S. Securities and Exchange Commission (SEC) regarding its stance on cryptocurrencies within the notable case involving Binance Holdings Ltd. Binance, along with its U.S. arm and former CEO Changpeng Zhao, aims to have the SEC’s charges, filed last summer, dismissed.</p> 
<h3 id="sec-should-draw-clear-boundaries">SEC Should Draw Clear Boundaries</h3> 
<p>In a hearing on Monday, January 22, Judge Amy Berman Jackson of the US District Court for the District of Columbia requested the SEC to provide a clear definition of the boundary for what it deems a security concerning virtual tokens.</p> 
<p>The SEC, under the leadership of Chair Gary Gensler, has contended that a majority of crypto assets fall within the agency’s purview and are subject to its regulations. Judge Jackson expressed <a rel="nofollow" href="https://www.bnnbloomberg.ca/binance-case-again-testing-extent-of-sec-s-power-over-crypto-1.2025137" target="_blank">concern</a>, questioning the SEC’s stance. She stated that while the SEC claims all digital assets to be securities, “How are the issuers supposed to know when they cross the line?” she asked.</p> 
<p>In June of last year, the US SEC asserted that Binance, along with its former CEO Changpeng Zhao, mismanaged customer funds, provided misleading information to investors and regulators, and violated securities regulations. The SEC also accused the company of offering unregistered securities to U.S. investors. Binance and Zhao are currently contesting these allegations in court.</p> 
<p>Additionally, <a href="https://coingape.com/breaking-binance-ceo-resigns-as-part-of-doj-settlement/" target="_blank" rel="noopener">Binance and Zhao</a> entered guilty pleas to charges from the Justice Department and reached settlements with the CFTC and the Treasury Department in November. However, the SEC has no involvement in that particular agreement.</p> 
<h3 id="binance-holds-no-obligations">Binance Holds No Obligations</h3> 
<p>In presenting Binance’s case, Jason Mendro, an attorney representing the company, contended on Monday that Binance had no post-sale obligations to investors concerning specific tokens. This assertion was crucial for the argument that these assets shouldn’t be classified as securities.</p> 
<p>Binance further argued that the SEC did not adequately communicate its interpretation of securities laws, claiming a lack of fair notice. However, during the hearing, Judge Jackson expressed skepticism about the persuasiveness of this argument. Interestingly, Binance also teased <a href="https://coingape.com/binance-hearing-with-sec-is-on-with-coinbase-precedence-named/" target="_blank" rel="noopener">Coibase precedence</a> while putting forward its argument.</p> 
<p>On the contrary, Jennifer Farer, an attorney representing the SEC, pointed to Binance’s marketing efforts promoting its tokens. Farer argued that these promotional activities suggested investors anticipated a profit akin to what is expected when investing in securities.</p> 
<p>The post <a href="https://coingape.com/legal-showdown-binance-vs-sec-tensions-rise-in-court-hearing/">Binance vs SEC Courtroom Drama Unfolds As Tensions Escalate</a> appeared first on <a href="https://coingape.com">CoinGape</a>.</p>

Binance vs SEC Courtroom Drama Unfolds As Tensions Escalate

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Coingape News Media

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