Legal Battle Between Binance and SEC Continues
The ongoing legal dispute between Binance Holdings, Binance.US, CEO Changpeng “CZ” Zhao, and the U.S. Securities and Exchange Commission (SEC) has hit a roadblock. Magistrate Judge Zia M. Faruqui has granted an extension to allow the parties more time to resolve their differences.
Struggles with Document Discovery and Depositions
Efforts to settle the disagreement over document discovery and depositions have been unsuccessful, according to Joint Status Reports submitted by the defendants and the SEC. In response, Paradigm Operations has filed an amicus brief supporting Binance’s motion to dismiss the SEC’s complaint, focusing on the issue of SEC jurisdiction over cryptocurrencies.
Court Grants Extension
In late October, Magistrate Judge Faruqui extended the deadline for Binance, Binance.US, CEO CZ Zhao, and the SEC. The judge emphasized that they must adhere to the court’s consent order regarding document discovery and depositions.
Judge Expresses Dissatisfaction
During a joint status report presentation, Magistrate Judge Faruqui expressed dissatisfaction with both parties for failing to reach a decision on discovery requests.
SEC Alleges Withholding of Documents
The SEC claims that Binance has only provided 382 documents and is withholding information on how they will fulfill the agency’s request for the remaining records. Binance.US argues that the SEC’s demands since the September 18 hearing are unreasonable.
Paradigm Supports Binance
Paradigm has once again come to Binance’s defense in their attempt to dismiss the SEC’s complaint. They raise concerns about the SEC’s Howey Test and argue that standard asset sales should be classified as “investment contracts” under the Securities Laws.
Call for Regulatory Framework
Paradigm emphasizes the need for Congress to establish a regulatory framework for cryptocurrencies to prevent the SEC from gaining excessive control over crypto assets. They also request the court to accept their motion to dismiss the case.
Potential Implications
This ongoing legal battle is attracting attention due to its potential impact on cryptocurrency regulation in the United States. The outcome of this case could have significant consequences for the industry.
Hot Take: Paradigm Joins Forces with Binance in Legal Battle Against SEC
In the escalating legal fight between Binance and the U.S. Securities and Exchange Commission (SEC), Paradigm Operations has filed an amicus brief supporting Binance’s motion to dismiss the SEC’s complaint. Paradigm argues that the SEC’s jurisdiction over cryptocurrencies is questionable, highlighting the need for Congress to establish clear regulations in this area.
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