After several months of litigation, the case between Binance and the SEC is far from over. The SEC has filed charges against the largest crypto exchange. But Binance challenged the SEC’s authority by filing a request to dismiss the case against them. Where exactly is the trial? Focus on the latest news regarding the Binance vs. SEC case.
According to Binance, the SEC exceeded its powers
As a reminder, the SEC filed suit against Binance in June, but encountered some obstacles. She has been unable to obtain permission to investigate software from Binance.US, the US arm of the crypto giant, since June. However, this did not prevent the regulator from pursuing the exchange on several counts. We can cite the irregular operation of crypto exchanges, the falsified presentation of transaction controls on Binance.US or even the offer to sell “securities” not recorded.
Recently, Binance and its CEO Changpeng Zhao (CZ) filed a request to dismiss the complaint filed by the SEC. They maintain in their action that the commission exceeded its powers by pursuing them. But the Securities and Exchange Commission opposed the motion to dismiss filed by the crypto company.
Regulator opposes motion to reject crypto exchange
The SEC’s arguments include violations of securities laws and alleged manipulation of the Howey test. She claims that Binance marketed and sold BUSD as an investment contract. Yet exchange claims BUSD crypto was not offered as an investment contract since there is no possibility of profit. After all, its value must remain at one dollar.
The SEC adds that the Binance defendants relied on Ripple’s conclusion. This determined that certain sales of purchase and sale transactions did not involve securities. The reason is that buyers cannot know whether their payments were going back to Ripple or any other XRP crypto seller.
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