The leading cryptocurrency exchange, Binance, and its CEO filed motions to dismiss an ongoing lawsuit by the U.S. Securities and Exchange Commission, asserting the agency’s overreach of authority.
Binance Holdings, its U.S. counterpart Binance.US (legally known as BAM Trading Services), and CEO Changpeng “CZ” Zhao filed separate motions seeking the dismissal of a lawsuit brought against them by the United States Securities and Exchange Commission (SEC). The filings accuse the SEC of overstepping its authority and applying securities laws inappropriately to cryptocurrency assets.
Read More: Binance vs. SEC: Exchange Labels SEC’s Requests as “Unreasonable” in Latest Court Filing
Binance Files To Dismiss Lawsuit
In a joint 60-page petition submitted by Binance and Zhao, lawyers representing the defendants criticized the SEC for imposing its regulatory authority over the crypto sector retroactively, without first providing clear guidelines.
Alongside Binance and Zhao’s petition, Binance.US – the company’s American affiliate – took similar action by submitting its own 56-page filing for dismissal of the charges. Both motions are centered around the argument that the SEC’s actions are based on a fundamental misinterpretation of the application of securities laws to cryptocurrency assets.
The SEC filed a lawsuit against Binance, its affiliates, and Zhao on June 5. The claims were that the exchange offered the sale of unregistered securities and operated illegally in the United States. These accusations come three months after the CFTC sued Binance for failing to register. They also sued the exchange for violating several of the CFTC’s guidelines.
Read More: Binance.US CEO Quits, Company Cuts 100+ Jobs Amid Regulatory Pressure
Overarching Effect on the Industry
The legal dispute between Binance and U.S. regulators raises questions about cryptocurrency regulation. As the world’s largest cryptocurrency exchange by trading volume, Binance plays a crucial role in the industry. Any regulatory actions against it will likely have lasting effects on the crypto market.
The filings also represent a crucial moment for the cryptocurrency industry’s relationship with regulatory authorities. The dispute’s outcome could significantly impact the future of the U.S. crypto market and its regulations.
Disclaimer: Please note that this article serves solely for informational purposes and should not be construed as financial advice. We strongly advise readers to conduct thorough research and consult with financial professionals before making any investment decisions.
