A Judge Signs Multiple Orders in the SEC vs Binance Lawsuit
In the ongoing lawsuit between the United States Securities and Exchange Commission (SEC) and Binance, a senior judge in the Columbian district court has signed multiple orders to clear pending motions ahead of the crucial hearing. One of the key orders cleared by the judge is an amicus brief filed by Circle, the issuer of USD Coin (USDC) stablecoin, arguing that assets pegged to the U.S. dollar are not securities.
Circle’s Argument Against USDC as Securities
Circle filed a court motion on September 29, stating that buyers of stablecoins like USDC do not expect any profit from acquiring them. According to Circle, payment stablecoins do not possess the characteristics of an investment contract. They argued that USDC should not be considered a security.
Acceptance of Circle as Amicus Curiae
Judge Amy Berman Jackson accepted Circle as amicus curiae in support of neither party in Binance and CEO CZ’s motions to dismiss the lawsuit. An amicus curiae is a person or group that provides information or insight into a legal dispute without being directly involved. The court also clarified that Circle can only participate in oral argument with the court’s permission.
The Role of an Amicus Curiae
An amicus curiae assists the court by offering expertise or insight into the case. The court has the authority to decide whether to consider an amicus brief.
Hot Take: The Significance of Circle’s Amicus Brief
The acceptance of Circle as an amicus curiae could potentially influence the outcome of the SEC vs Binance lawsuit. By arguing that stablecoins like USDC should not be considered securities, Circle is presenting a different perspective on the matter. This development highlights the complexity of defining digital assets within existing regulatory frameworks and further underscores the need for clear guidelines in the crypto industry.
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