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Binance Challenges SEC's Amended Complaint

Key Takeaways

  • Binance and its former CEO CZ have filed a motion to dismiss the SEC's revised lawsuit;
  • Binance's legal team argues that the SEC's view of crypto as investment contracts was previously rejected by the court and maintains that secondary market sales should not be classified as securities transactions;
  • The SEC asserts that most crypto transactions should be seen as securities deals due to potential value appreciation.
Binance Challenges SEC's Amended Complaint

Facing ongoing allegations from the US Securities and Exchange Commission (SEC), Binance $39.9B and its former CEO Changpeng Zhao have filed a motion to dismiss the regulator's amended lawsuit on November 4.

The SEC's amended lawsuit includes additional digital currencies like Filecoin FIL $7.97 , Cosmos ATOM $10.02 , The Sandbox SAND $0.9380 , Decentraland MANA $0.7894 , and Axie Infinity Shards AXS $9.47 .

Binance's attorneys argue that the court previously acted correctly by rejecting the SEC's initial attempt to label crypto assets as investment contracts.

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The SEC insists that virtually all transactions involving crypto are securities dealings because buyers might anticipate asset appreciation. Binance's counsel argues that this position is legally baseless and urges the court to dismiss the amended claims with prejudice, preventing any further revisions.

The defense team contends:

The SEC pays lip service to the Court's ruling that crypto assets are not in and of themselves "securities," but refuses to accept the logical conclusion of that ruling—that secondary market resales of the assets long after they were first distributed by their developers are not "securities" transactions.

These latest developments mark another episode in the judicial conflict between Binance and the SEC, which began when the regulator filed a lawsuit against the exchange in June 2023.

In other news, a 25-year-old from Alabama was arrested on October 17 for hacking the SEC's social media to post fake Bitcoin ETF approval news.

Gode S. Web3 Market Analyst
Gode is a Web3 Market Analyst who researches the most important industry events and interprets how they affect the wider Web3 space. Her formal education in media culture & digital rhetoric allows her to employ a methodical approach to evaluating critical Web3 news data, including large-scale events and the wider social sentiment within the ecosystem.
Gode is a mutilingual professional, having studied in multiple universities all across Europe. This allows her to have a one-of-a-kind opportunity to analyze Web3 social sentiments spanning different cultures and languages and, in turn, develop a much deeper understanding of how the Web3 space is growing within different communities. With the rest of her team, Gode works to identify crucial crypto news patterns and provide unbiased and data-driven information.
Gode’s passions include working and communicating with people, and when she’s not researching Web3 news, she spends her time traveling and watching true crime documentaries.

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