The U.S. Securities and Exchange Commission (SEC) has responded to Binance’s recent motion to dismiss the regulator’s lawsuit against the exchange, referring to the latter’s arguments as a “tortured interpretation of the law.” In an 88-page filing with the DC Circuit on Tuesday, the agency argued that Binance had ignored most of its core allegations in a “bid to evade accountability” for its alleged violations of securities law.
Countering Binance’s Theatrics
In its preliminary statement, the SEC cited a quote mentioned in its original lawsuit, in which Binance’s Chief Compliance Officer said the company was “operating as a fking unlicensed securities exchange in the USA bro.” The SEC accused the exchange of “theatrics” to distract from its violations.
The SEC also dismissed Binance’s comparison of cryptocurrencies within an investment contract to oranges and baseball cards as “absurd.” The agency stated that if oranges alone were at issue, those selling and promoting these assets and Defendants themselves would have had no need to entice investors with extended marketing campaigns touting their potential to increase in value based upon the efforts of others.
Hot Take
Former official John Reed Stark praised the SEC’s arguments as “compelling and strongly supported in both fact and law.” He added, “Stick a fork in it, Binance, you’re done.”
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