The US SEC Refers to Terraform Case in Coinbase and Binance Lawsuits
The US Securities and Exchange Commission (SEC) has cited the recent ruling on Terraform Labs during the hearings involving Coinbase and Binance. This strengthens the SEC’s claim that these cryptocurrency exchanges violated securities laws.
Terraform Labs Ruling as Precedent
The SEC ruled on December 28 that Terraform Labs’ tokens, UST and LUNA, should be considered securities. The ruling stated that Terraform Labs offered and sold unregistered securities, which goes against US securities law.
Similar Arguments in Coinbase and Binance Lawsuits
In a recent filing related to the Coinbase lawsuit, the SEC made reference to the Terraform Labs case. The regulator is using the same argument in separate lawsuits against Coinbase and Binance. Both exchanges are currently engaged in legal battles with the SEC.
SEC’s Comparison of Binance Case to Stablecoin Programs
In another document, the SEC mentioned that the Binance case is similar to Terraform Labs’ “so-called stablecoin” BUSD and its programs related to staking-as-a-service, BNB vault, and Simple Earns.
Binance Delisting BUSD Trading Pairs
Binance announced its plan to delist eight Binance USD (BUSD) trading pairs as part of its broader strategy to withdraw support for the stablecoin by 2024. The exchange intends to suspend isolated margin borrowing for pairs like AMB/BUSD, DASH/BUSD, FIDA/BUSD, HARD/BUSD, HOT/BUSD, IOST/BTC, NULS/BUSD, PORTO/BUSD, and REQ/BUSD.
Possible Delisting of Privacy Coins by Binance
Binance issued a warning that it may delist ten privacy coins, including Monero, Zcash, and Horizen, due to regulatory concerns. These tokens have received a “monitoring tag” and may not meet listing requirements related to team commitment, network security, trading volume, and other factors.
Hot Take: SEC Expands Its Reach in Crypto Regulation
The SEC’s citation of the Terraform Labs case in the Coinbase and Binance lawsuits highlights the regulator’s efforts to enforce securities laws in the cryptocurrency industry. This signals an expansion of the SEC’s reach and influence over exchanges and tokens. The outcome of these legal battles will have significant implications for the future of crypto regulation in the US.
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