Skip to main content

Join Our Telegram channel to stay up to date on breaking news coverage

The Securities and Exchange Commission (SEC) said arguments made by Binance to dismiss its lawsuit are ”absurd” and have no basis in law.

The SEC is pushing back against an attempt by Binance to dismiss the lawsuit, saying the exchange has a “tortured interpretation of the law” in a recent filing. It added that a ruling to dismiss the lawsuit would “dismantle decades of foundational precedent upon which the nation’s securities laws operate.”

The SEC filed a lawsuit against Binance and its CEO, Changpeng Zhao in June. The charges include operating an unregistered exchange and offering unregistered securities: BNB and BUSD.

Binance later filed a motion to dismiss the lawsuit, accusing the SEC of regulatory overreach. The exchange blamed the SEC for a lack of clear crypto regulations, misinterpreting securities laws, and applying them to crypto.

Binance Arguments Are “Absurd,” SEC Says

The SEC has called some of Binance’s arguments, such as comparing crypto assets to grocery items, “absurd.” It reiterated that crypto sales on the exchange constituted investment contracts under the Howey test.

The SEC has also responded to Binance’s argument that the suit violated the “Major Questions Doctrine.”

The doctrine comes from last year’s Supreme Court ruling that Congress does not delegate authority to federal agencies. Several crypto companies have cited the ruling in response to the SEC’s overreach.

“This civil enforcement action lacks the vast economic or political significance that the Supreme Court has pointed to when invoking the major questions doctrine,” it said.

The securities regulator further says that granting Binance’s motion would tear down precedents in securities laws. It would create a “rigid framework” without basis in case precedent or existing law.

SEC Opens Talks With Grayscale On Bitcoin ETF

Following Grayscale’s legal win against the SEC, the securities regulator might soon approve a spot Bitcoin ETF, going by recent developments.

The regulator has opened talks with Grayscale to convert its trust Bitcoin product (GBTC) into a spot Bitcoin ETF.

The market keenly awaits the approval of this Bitcoin product. Bitcoin is up 3.7% in the last 24 hours to trade at $36,587 at 03:54 a.m. ET time.

Also Read

New Crypto Mining Platform – Bitcoin Minetrix

Bitcoin MinetrixBitcoin Minetrix
  • Audited By Coinsult
  • Decentralized, Secure Cloud Mining
  • Earn Free Bitcoin Daily
  • Native Token On Presale Now – BTCMTX
  • Staking Rewards – Over 100% APY

Bitcoin MinetrixBitcoin Minetrix

Join Our Telegram channel to stay up to date on breaking news coverage

Source link


Author admin

More posts by admin
0 0 votes
Article Rating
Notify of
Inline Feedbacks
View all comments