- Binance challenges SEC’s lack of regulatory clarity, leaving crypto assets undefined.
- Binance highlights SEC’s inconsistent approach, referencing recent decisions on Ether.
- With the discovery phase closed, Judge sets deadlines for next steps as Binance monitors the case.
In the ongoing legal case between Binance, former CEO Changpeng Zhao, and the U.S. Securities and Exchange Commission (SEC), Binance’s legal team has filed a motion to dismiss the SEC’s amended complaint, challenging the SEC’s regulatory stance on crypto assets.
The filing , submitted on Monday, argues that the SEC lacks clear standards for regulating virtual assets and claims the complaint misinterprets securities laws in its approach to crypto transactions.
Binance’s legal team contends that the amended complaint continues to unfairly categorize a wide range of crypto transactions as securities transactions without sufficient regulatory guidelines, despite a previous court ruling questioning the SEC’s position.
According to Binance’s legal counsel, the SEC’s insistence on labeling most crypto transactions as securities goes against the earlier ruling. The filing also disputes the SEC’s view that secondary market transactions should be classified as securities solely based on buyer expectations of profit.
Read also: SEC vs. Binance Lawsuit Update – Judge Rules BUSD Not a Security
Regulatory Uncertainty and SEC’s Approach to Crypto Assets
Binance’s legal team further highlights what it calls the SEC’s selective and inconsistent classification of crypto assets as securities. The filing argues that the SEC has not set clear guidelines for defining which crypto transactions fall under securities laws.
The document notes that this lack of regulation leaves market participants, courts, and consumers without a consistent standard, complicating compliance and enforcement.
Additionally, Binance’s legal team pointed out that the SEC recently dropped its claims regarding Ether (ETH) as an investment contract without providing further clarification, underscoring the uncertainty in the agency’s approach.
Future Court Proceedings and Discovery Phase Update
In a case update, U.S. District Judge Amy Berman Jackson has ordered the completion of the discovery phase and directed both parties to submit a joint filing on further proceedings by July 29.
The judge’s instructions also include deadlines for filing any motions to amend the complaint or seek additional relief after a partial dismissal of the SEC’s claims.
Despite the court’s decision to dismiss some claims, Binance.US continues to monitor upcoming legal phases closely as the case progresses.
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