Binance, Binance.US, and Changpeng Zhao (CZ) submitted their response to the SEC's opposition to the motion seeking dismissal of the lawsuit, according to two court filings. The SEC's request for a broad interpretation of the Howey Test, asserting all investments, regardless of an investment contract, fall under securities laws, prompted Binance and <a href="https://www.cryptoknowmics.com/news/former-binance-ceo-faces-legal-trouble/">CZ's legal team</a> to request a dismissal with prejudice.

In their argument, they claimed the SEC's allegations lacked merit, asserting that the SEC, after remaining passive for years, is now attempting to exert authority over the crypto industry without congressional authorization. The defendants contested the SEC's failure to convincingly label tokens like BNB, BNB vault, or simple earn as securities. They also argued that the SEC's claim regarding the BNB offering is time-barred, and their arguments improperly extend securities laws beyond national boundaries.
<h2>Binance and SEC Clash: Jurisdiction, Product Classification Disputes</h2>
Binance specifically <a href="https://storage.courtlistener.com/recap/gov.uscourts.dcd.256060/gov.uscourts.dcd.256060.190.0.pdf" target="_blank" rel="nofollow noopener">pointed out</a> the SEC's failure to establish personal jurisdiction against Changpeng Zhao and asserted a lack of fair notice, calling for a dismissal. Meanwhile, Binance.US refuted the SEC's failure to categorize any of its products as securities and emphasized the absence of fraud claims against its customers and equity investors.

The SEC retaliated against Binance.US's motion to dismiss, rebuffing claims of Howey Test violations and rejecting accusations of overreach in regulating the crypto industry. The SEC defended its longstanding investor protection role under existing securities laws. Additionally, Binance criticized the SEC's procedural approach, deeming it improper and impermissible for attempting to introduce findings from a $4.3 billion guilty plea and settlement agreement with the DOJ into this lawsuit.

Binance Requests Dismissal of SEC Lawsuit

Legal move: Binance seeks dismissal with prejudice of SEC lawsuit. Stay informed on the latest developments. #Binance #SEC #CryptoNews

Sonakshi is into the crypto world ever since she heard about it and is pursuing her interest through Cryptoknowmics. She is a sensational poet, technical writer and content strategist.

Binance Requests Dismissal of SEC Lawsuit

Top Picks