In a bold legal maneuver, Binance and its former CEO, Changpeng Zhao, have requested the dismissal of recent allegations made by the U.S. Securities and Exchange Commission (SEC). This motion, submitted to a court, claims that the SEC has ignored prior rulings asserting that cryptocurrencies do not fall under the category of securities.
Why Does Binance Assert Cryptocurrencies Aren’t Securities?
Binance contends that the SEC’s stance contradicts its own previous admissions that cryptocurrencies are not securities. The company argues the SEC mistakenly categorizes certain cryptocurrency transactions as securities trades based on an assumption of anticipated asset growth among investors.
What’s Next for Binance’s Legal Battle?
This latest motion comes after Judge Amy Berman Jackson allowed several SEC claims to move forward, though she dismissed earlier accusations related to Binance’s Simple Earn product. The SEC now seeks to bolster its case by reintroducing these claims through new evidence.
The SEC initially initiated action against Zhao and Binance in June 2023, targeting three entities: BAM Management U.S. Holdings, BAM Trading Services, and Binance Holdings. This highlights the ongoing scrutiny the cryptocurrency sector faces from regulatory bodies.
- Binance emphasizes that cryptocurrencies should not be viewed as securities.
- The SEC acknowledges its own previous rulings on cryptocurrency classifications.
- The legal proceedings continue to evolve with potential implications for the entire industry.
The outcome of this case could significantly impact how cryptocurrencies are regulated in the U.S. and set important precedents for the industry at large.