Legal Battle with Regulators
If you are following the story of Binance, you may be aware of the recent legal tussle with regulators. Binance is claiming that a previous $56 million settlement with the DOJ and FinCEN is not related to the SEC’s allegations against it. They are defending themselves against SEC charges, arguing that they unlawfully offered unregistered securities to U.S. investors.
In their latest move, Binance argued that the SEC’s brief lacks new evidence and counter the regulator’s stance on securities law violations. This courtroom drama adds twists to the ongoing legal battle between Binance and the SEC.
Unpacking SEC Accusations
Binance has intensified its defense against the SEC’s accusations. The focus revolves around the SEC’s allegations that Binance allowed the trading of unregistered securities. Binance and its U.S. entity are disputing the application of the “Howey Test,” a benchmark used to define securities. They emphasize that the SEC hadn’t established any investment contracts for U.S. customers involved in cryptocurrency transactions, a crucial factor under the Howey Test.
This countersuit by Binance and its U.S. arm is part of their effort to dismiss the lawsuit initiated by the SEC back in June. The SEC accused Binance and Binance.US of permitting the public trade of unregistered securities by listing specific cryptocurrencies and offering a staking service.
Mitigating the Impact of Settlements
Binance argued that the DOJ settlements, acknowledging violations of the BSA, shouldn’t necessarily be interpreted as an acknowledgment of breaching securities laws under the SEC’s jurisdiction. Binance and its founder, Changpeng Zhao, emphasized that the specifics of the plea agreements with the DOJ didn’t provide sufficient notice or indication that the assets in question were considered securities under the purview of the Securities Act or the Exchange Act overseen by the SEC.
SEC Seeks Gains via Other Agencies Notice? Raises Questions!
Binance also called out the SEC’s attempt to bring in new arguments and facts, labeling it as an improper move. Binance accused the SEC of trying to ride on other agencies’ resolutions, hinting at a lack of solid regulatory backing. The big question now is how the SEC plans to back its allegations of Binance operating unregistered national securities exchanges and broker-dealers amidst the proposed changes to US securities laws. This legal showdown is far from over!
Hot Take
As Binance continues to fight the SEC’s allegations, the legal battle with regulators shows no signs of ending soon. The outcome of this case could have significant implications for the crypto industry and how it operates within the regulatory framework. Stay tuned for more updates on this ongoing legal saga!
By
By
By
By
By
By