The U.S. Securities and Exchange Commission (SEC) continues to argue violations of security laws and fraud in lawsuit against Binance and its US subsidiary Binance.US. In the latest filing, the U.S. SEC opposes the latest request by Binance.US as well as Binance and CEO Changpeng “CZ” Zhao to dismiss the lawsuit.
US SEC Files Opposition in Binance and Terra Lawsuits
The U.S. Securities and Exchange Commission (SEC) filed opposition to a Binance.US’ motion to dismiss the lawsuit, according to a court filing late November 7. The SEC also requests Judge Amy Berman Jackson to sign a proposed order in favor of the regulator.
The SEC argues that Binance.US’ motion to dismiss the lawsuit must be denied by the court due to securities violations under the Howey test and investment contract rules including illegally listed unregistered securities in the form of crypto. Also, the SEC also refused to accept overreaching to regulate the crypto industry, claiming to protect investors under the existing securities laws.
The SEC asserted that Binance.US delayed and failed to coordinate with the earlier consent order, raising disputes related to document discovery and depositions.
Meanwhile, Judge Jackson set an in-person hearing on the motion to dismiss the U.S. SEC’s complaints against all Binance, Binance.US, and CEO CZ on January 18, 2024.
Crypto Market On The Brink of Rally
The recent losses suffered by the SEC in the Ripple lawsuit have impacted the credibility of the regulator. Federal judges have also called the SEC’s approach irrational, calling it ‘arbitrary and capricious’.
The crypto market extended gains after the recent recovery amid anticipation of spot Bitcoin ETF approval and . Binance’s BNB token soared more than 10% in a week, the price is currently trading at $247.
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