Circle’s Amicus Curiae Entry: What it Means for Binance and the SEC Lawsuit
The SEC’s lawsuit against Binance has taken an interesting turn with Circle, the issuer of USD Coin (USDC), entering the case as an amicus curiae. District Judge Amy Berman Jackson has allowed Circle to file a brief in support of Binance ahead of the pivotal hearing on October 12.
Circle’s amicus brief argues that stablecoins like USDC, which are backed by the US dollar, should not be considered securities. They contend that buyers of stablecoins do not expect to profit from their purchases and that these coins primarily serve as a medium of exchange.
Binance’s Reaction and Judge’s Key Orders
Judge Jackson’s acceptance of Circle as an amicus curiae means that the company can offer its perspective on the case without bias towards either Binance or its CEO, Changpeng Zhao. However, Circle will need explicit permission from the court to participate in oral arguments.
The judge also granted pro hac vice status to several attorneys, allowing them to participate in the case despite not being licensed in the specific jurisdiction. These attorneys must complete electronic filing training and adhere to related requirements.
What’s Next?
In addition to Circle’s involvement, crypto research firm Paradigm has filed an amicus brief opposing the SEC’s stance in the same lawsuit. Paradigm accuses the commission of overreach and attempting to rewrite laws based on “disturbing allegations” against Binance and its co-defendants.
Binance had previously filed a joint motion with Bam Management Holdings Inc., affiliated with Binance, to dismiss the lawsuit. However, their alleged involvement in the collapse of FTX is also complicating matters for Binance. Only time will tell if Binance can overcome the SEC’s allegations or if they will fall into the regulatory trap.
Hot Take: Circle’s Entry Adds Complexity to the SEC vs Binance Case
The involvement of Circle as an amicus curiae in the SEC’s lawsuit against Binance adds another layer of complexity to an already closely-watched case. Circle’s argument that stablecoins should not be considered securities challenges the SEC’s position and could have significant implications for the regulation of cryptocurrencies. As the hearing approaches, all eyes are on how this legal battle between Binance and the SEC will unfold and its potential impact on the broader crypto industry.
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