Binance, one of the world's largest crypto exchanges, continues to defend itself against charges brought by the Securities and Exchange Commission (SEC). On November 4, 2024, attorneys for Binance and its former CEO, Changpeng Zhao “CZ,” filed a motion to dismiss an amended SEC complaint.
Binance and CZ Request Dismissal of SEC Amended Complaint
The SEC's initial complaint alleged that Binance and CZ violated securities laws in connection with certain cryptos. In this new motion, lawyers for Binance and CZ ask the court to dismiss updates to the SEC's complaint, which now target additional tokens such as Axie Infinity Shards (AXS), Filecoin (FIL), Cosmos ( ATOM), The Sandbox (SAND) and Decentraland (MANA).
Lawyers for Binance and CZ argue that the SEC has failed to demonstrate that these tokens are securities under the law. They claim that the SEC continues to “refuse to clearly articulate” regulations regarding virtual assets, creating legal uncertainty for crypto companies.
In their motionlawyers for Binance and CZ point out that the court previously rejected the SEC's initial attempt to conflate crypto assets with investment contracts. They argue that secondary market transactions in these assets, long after their initial distribution, should not be considered securities transactions.
The crypto industry is holding its breath
This ongoing legal battle between Binance and the SEC is being closely watched by the crypto industry. It could have significant implications for the future regulation of digital assets in the United States. Binance supporters hope the court will recognize the company's arguments and dismiss the SEC's charges, which could set an important precedent for other crypto companies facing similar regulatory challenges.
In short, the motion filed by Binance and CZ on November 4, 2024 marks a crucial step in their fight against the SEC. As the court considers this request, the crypto industry eagerly awaits a ruling that could clarify regulations surrounding digital assets and influence the future of crypto in the United States.
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