SEC Calls Binance’s Arguments “Absurd”
The Securities and Exchange Commission (SEC) has criticized Binance’s motion to dismiss the lawsuit, calling it “absurd” and lacking a legal basis. The SEC stated that Binance’s interpretation of the law is “tortured” and that dismissing the lawsuit would disrupt the foundational precedent of securities laws.
In June, the SEC filed a lawsuit against Binance and its CEO, Changpeng Zhao, alleging that they operated an unregistered exchange and offered unregistered securities. Binance responded by filing a motion to dismiss the lawsuit, accusing the SEC of regulatory overreach and misinterpreting securities laws.
SEC Responds to Binance’s Arguments
The SEC has dismissed some of Binance’s arguments as “absurd,” particularly comparing crypto assets to grocery items. It also refuted Binance’s claim that the suit violated the “Major Questions Doctrine,” stating that the action lacks economic or political significance.
The SEC further argues that granting Binance’s motion would undermine precedents in securities laws, creating a “rigid framework” without basis in existing law.
SEC Engages with Grayscale for Bitcoin ETF
Following Grayscale’s legal victory against the SEC, talks have opened between the regulator and Grayscale to convert its trust Bitcoin product into a spot Bitcoin ETF. This move suggests that the SEC may soon approve a spot Bitcoin ETF.
The market eagerly awaits this development. Bitcoin has seen a 3.7% increase in value in the last 24 hours, trading at $36,587 at 03:54 a.m. ET time.
Hot Take
The SEC firmly stands by its lawsuit against Binance, rejecting claims of regulatory overreach and absurd interpretations of securities laws. Additionally, discussions with Grayscale indicate potential approval for a spot Bitcoin ETF, sparking anticipation in the market and driving up Bitcoin’s value.
Insa’s extensive background in the financial realm encompasses roles as a writer, trader, and personal finance coach. Her proficiency spans a wide spectrum, ranging from commodities and indices to forex and cryptocurrencies. Insa’s specialization lies in furnishing strategic investment advice tailored to the fintech investment niche.