The SEC Files Petitions Against Coinbase and Binance
The Securities and Exchange Commission (SEC) has filed petitions in the cases against Coinbase and Binance, urging the courts to consider a recent ruling regarding Terraform Labs. The agency argues that Binance’s BUSD should be classified as a security, similar to the UST token in the Terraform Labs case.
The SEC Cites Terraform Labs Ruling
In its case against Coinbase, the SEC presented the judgment of the Terraform Labs court, which classified UST, LUNA, wLUNA, and MIR tokens as securities. The SEC cites this ruling as support for its opposition to Coinbase’s motion for judgment in its favor. The agency argues that cryptocurrency issuers like Coinbase have implicitly encouraged investors to expect an increase in asset value through a secondary market for resale.
New Developments in Legal Processes
In the case against Binance, the SEC is also using the Terraform Labs ruling as a supporting argument. The agency has requested a Washington court to consider the Terraform ruling while evaluating Binance’s motions to dismiss the case. The SEC argues that Binance’s offerings, including BUSD and staking services, are similar to those of Terraform Labs. Binance and former CEO Chanpeng Zhao recently settled with the Department of Justice for violations of the Bank Secrecy Act.
Justin Sun Transfers Millions in USDT to Binance
Justin Sun, founder of Tron (TRX), reportedly transferred millions of dollars in USDT to Binance during a weak cryptocurrency market period. On-chain data shows that an address suspected to belong to Sun deposited 50 million USDT on Binance. Speculations suggest that Sun may have sold his USDT in anticipation of a market downturn and to accumulate other cryptocurrencies at more favorable prices.
Hot Take: SEC’s Efforts to Classify Tokens as Securities
The SEC’s recent petitions against Coinbase and Binance demonstrate its continued efforts to classify certain tokens as securities. By citing the Terraform Labs ruling, the SEC aims to strengthen its arguments against these cryptocurrency exchange platforms. These legal battles have significant implications for the crypto industry and highlight the ongoing regulatory challenges faced by market participants. As the SEC continues to scrutinize digital assets, it is crucial for companies to navigate the evolving regulatory landscape to ensure compliance and maintain investor trust.
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