United States District Judge Amy Berman Jackson, overseeing the District Court for the District of Columbia, has cleared pending motions in the ongoing legal battle between the U.S. SEC and Binance, the prominent crypto exchange. The move comes just a day before the crucial hearing scheduled for Oct. 12.
Acceptance of Circle’s Amicus Brief
Among the noteworthy orders issued, Judge Jackson admitted an amicus brief filed by Circle, the issuer of USD Coin (USDC). The brief, filed on Sept. 29, challenges the classification of assets pegged to the U.S. dollar. It further argued that stablecoins like USDC should not be considered securities.
According to Circle, purchasers of these stablecoins do not anticipate financial gains. This emphasizes that payment stablecoins lack the characteristics of an investment contract. The court accepted Circle as amicus curiae, underscoring the impartiality of its stance in supporting neither Binance nor its CEO Changpeng Zhao’s motions to dismiss the lawsuit.
Role of an Amicus Curiae
An amicus curiae is not party directly involved in the legal dispute. However, it provides valuable assistance to the court by offering information, expertise, or insights. The court’s acceptance of Circle’s brief reinforces its commitment to a thorough examination of the case.
However, it’s essential to note that participation in oral arguments is contingent upon the court’s permission, emphasizing the judge’s cautious approach to the proceedings.
Background of the SEC vs. Binance Lawsuit
The SEC filed a lawsuit against Binance on June 5, encompassing 13 charges, including allegations of unregistered securities sales involving BNB and Binance USD (BUSD) tokens. Additionally, the SEC contends that Binance operated unlawfully in the United States, failing to register as a broker-dealer clearing service.
In response, on Sept. 22, Binance and CEO Changpeng Zhao petitioned the court to dismiss the SEC lawsuit. Their legal team argued that the SEC had overstepped its authority, emphasizing the absence of clear regulatory norms for the sector before initiating legal action against the exchange.
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