In a strategic move, Binance and its CEO, Changpeng Zhao, have filed a Joint Notice of Supplemental Authority with the U.S. Securities and Exchange Commission (SEC), bolstering their defense against the SEC’s legal claims.
The filing references Coinbase’s recent partial victory in its legal battle with the SEC, aiming to strengthen Binance’s argument for dismissal of all charges. The SEC accuses Binance of operating as an unregistered exchange, broker-dealer, and clearing agency. However, Binance counters that the SEC has failed to present sufficient evidence to substantiate its case.
Binance’s filing emphasizes concerns over the SEC’s outdated approach to regulating digital assets, asserting that the agency’s understanding of securities laws does not align with the evolving crypto industry. The exchange also criticized the SEC’s reliance on traditional legal frameworks for regulating digital currencies.
Further, Binance’s legal team pointed out that the SEC did not issue a deficiency order against Coinbase, suggesting the enforcement actions are arbitrary. This claim draws parallels to the Coinbase case, where the 3rd Circuit Court of Appeals ruled that the SEC must clarify its stance on the regulatory treatment of crypto exchanges.
Binance argues that this ruling underscores the lack of clear regulatory guidance for digital asset exchanges, reinforcing its position in the ongoing case with the SEC.
In addition, Binance has challenged the SEC’s application of the Howey test, a legal standard used to determine whether an asset is a security. Binance contends that the SEC should not apply this test to digital assets without providing clear regulatory rules and guidance. The exchange is also seeking to dismiss the SEC’s requests for disgorgement and its stance on third-party tokens.
Related topics:
Cannes to Introduce Crypto Payment System for Local Businesses Ahead of Ethereum Conference
JP Morgan Predicts XRP ETF Could Attract Up to $8 Billion in Investments
North Korean Hackers Allegedly Stole $659 Million in Crypto Heists Last Year
