Binance Faces SEC Lawsuit
The United States securities regulator has disputed Binance’s motion to dismiss the lawsuit, claiming that the arguments put forward by Binance have no legal basis and rely on an incorrect legal analysis. The SEC filed a court document on Nov. 7 rejecting Binance’s attempt to throw out the suit, stating that no court has adopted Binance’s interpretation of the law.
In June, the SEC sued Binance, Binance.US, and its founder for selling unregistered securities and failing to register as an exchange in the United States. Binance argued that the SEC failed to introduce crypto guidelines, misinterpreted securities laws, and overstepped its authority.
The SEC countered by claiming that Binance deliberately chose not to comply with federal securities laws. It also refuted Binance’s comparison of crypto to supermarket items like oranges, stating that the crypto sales are investment contracts under the Howey test.
SEC Rebuts Binance’s Arguments
The regulator reiterated its claims that BNB initial coin offering violated securities laws and also addressed Binance’s argument about violating the major questions doctrine. The SEC warned that granting Binance’s dismissal request would disrupt foundational precedent upon which the nation’s securities laws operate.
Hot Take: Future Implications
The ongoing legal battle between Binance and the SEC highlights the regulatory challenges faced by cryptocurrency exchanges in the United States. This case could set a significant precedent for how crypto regulations are enforced in the future, potentially impacting other exchanges and their operations within the country.
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