The U.S. Securities and Exchange Commission (SEC) is continuing its legal action against Binance and its U.S. subsidiary, Binance.US, by opposing their motion to dismiss the lawsuit.
The SEC alleges violations of security laws and fraud in its lawsuit against the cryptocurrency exchange and its CEO, Changpeng “CZ” Zhao. The latest filing by the SEC requests the court to deny Binance.US’ motion to dismiss.
SEC’s Opposition to Binance.US Motion
The SEC filed opposition to a motion by Binance.US seeking to dismiss the lawsuit. Further, in a court filing dated late November 7, the SEC also asked Judge Amy Berman Jackson to endorse a proposed order in support of the regulator’s position.
The SEC argues that the court should reject Binance.US motion to dismiss the lawsuit on the grounds of securities violations, as assessed under the Howey test, and for allegedly facilitating the trading of unregistered securities in the form of cryptocurrencies. Moreover, the SEC asserts that its actions are aimed at protecting investors within the framework of existing securities laws.
Disputes and Document Discovery
The SEC further alleges that Binance.US has delayed and failed to cooperate with an earlier consent order. Further, this has led to disputes related to document discovery and deposition processes in the lawsuit.
Additionally, Judge Amy Berman Jackson has scheduled an in-person hearing for January 18, 2024, to consider the motion to dismiss the SEC’s complaints.
Ripple Lawsuit Impact On Binance
It is also worth noting that recent legal setbacks suffered by the SEC. In addition, in the lawsuit against Ripple have also raised questions about the credibility of the regulator while federal judges have criticized the SEC’s approach as “irrational” and “arbitrary and capricious.”
Lastly, the price of BNB has also surged by over 10% in a week and is currently trading at $247 while reflecting the market’s sentiment and potential regulatory implications.
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