Binance vs SEC trial: The regulator wants to take advantage of a decision in the Terra case

The year 2023 has ended, but not the case between the SEC and Binance. Just yesterday, the United States crypto regulator filed a supplemental notice of authority that invites the court to consider a decision made in the SEC vs. Terraform Labs lawsuit. Binance’s lawyers have their work cut out for them again.

The SEC continues its attacks against Binance

There will therefore be no no rest for Binance and its entire legal team ? Because even after having paid 4 billion dollars in fines, and letting Changpeng Zhao (CZ) leave against his will, the first crypto exchange in the world is not experiencing any respite.

The SEC wants to draw inspiration from the judgment in the case opposing it to Terra

The SEC is using the Terra Labs case in a lawsuit against Binance. »

As reported CoinPaprika, the Securities and Exchange Commission filed a notice titled “Binance VS US SEC: Terra Lawsuit Decision As Supplement Authority” in court on January 3. It includes a request to take into account the decision in the case between the crypto regulator and Terraform Labs as part of the SEC vs Binance lawsuit.

The opinion is therefore relevant to the court’s consideration of defendants BAM Trading Inc. and BAM Management US Holding Inc’s motion to dismiss. “, states the SEC in the document.

In other words, the financial regulatory institution invites the court, like the one which ruled on the Terra affair, to consider the definition of “investment contract” in order to gain a point against the Binance defendants. Because the latter intend to “ reject decades of established law “. They also stipulate that an investment contract is not a contract nor a transaction and even less a scheme.

Furthermore, the same court that handled the SEC vs. Terra case applied the “Howey test”. This resulted in a qualification of the UST, LUNA, wLuna and MIR cryptocurrencies as investment contracts, and as a corollary “securities”.

For the case of Binance, this classification seems relevant for the stablecoin BUSD (already at the end of its life), the crypto associated with its BNB Vault staking service, and its Simple Earn program.

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