SEC Rejects Binance’s Attempt to Dismiss Lawsuit
The U.S. Securities and Exchange Commission (SEC) has rejected Binance’s attempt to dismiss the lawsuit against it, calling the company’s arguments “absurd.” The SEC reiterated that most crypto assets are considered securities under the Howey test, dismissing Binance’s comparison of tokens to oranges as absurd.
“Binance’s Chief Compliance Officer crudely but succinctly summed up this case when he admitted that Binance was ‘operating as a fking unlicensed securities exchange in the USA bro.’ He was right.”
SEC filing
Binance had previously argued that the SEC was violating the Fundamental Issues Doctrine, which sets strict limits for executive authorities in the interpretation of certain laws. The conflict between the SEC and Binance escalated in June when the regulator filed a lawsuit against the crypto exchange and Zhao, accusing them of violating securities regulations on 13 counts.
Hot Take: SEC vs. Binance Lawsuit Escalates
The SEC’s rejection of Binance’s attempt to dismiss the lawsuit indicates an escalating conflict between regulators and crypto exchanges. This legal battle highlights the ongoing regulatory challenges facing the cryptocurrency industry, with significant implications for Binance and its CEO Changpeng Zhao. As the case unfolds, it will likely have a lasting impact on how crypto assets are regulated and traded in the United States.
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