Binance and Changpeng Zhao Search Dismissal of SEC Lawsuit, Citing Regulatory Overreach

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Binance Holdings and its CEO, Changpeng Zhao, requested the dismissal of a lawsuit introduced in opposition to them by the Securities and Trade Fee (SEC), arguing the regulator had overstepped its authority.

In a 60-page movement filed on Sept. 21, Zhao and his trade known as the SEC’s lawsuit a retroactive try to make use of its regulatory energy in opposition to them after failing to place in place the required pointers.

The authorized battle between Binance and the SEC isn’t over but. Just lately CEO Chanpgeng Zhao requested the court docket to dismiss the SEC go well with.
Binance Holdings, it is U.S. counterpart and CEO Changpeng Zhao have filed motions in search of the dismissal of a lawsuit in opposition to them by the Securities… pic.twitter.com/gBtxkqVn6Z

— VK.BNB (@TheHongVan68) September 22, 2023

The submitting stated that as just lately as 2021, SEC Chair Gary Gensler had publicly acknowledged that no “regulatory framework” existed underneath the authority of the SEC for crypto exchanges and that “solely Congress” may confer that authority.

It argues that the SEC instantly reversed course final 12 months when it started asserting that nearly all crypto belongings are securities topic to its authority.

“The SEC pursues these novel theories retroactively, in search of to impose legal responsibility for gross sales of crypto belongings that occurred way back to July 2017, earlier than the SEC offered any public steering regarding cryptocurrency,” it stated. “It’s clear that the SEC’s lawsuit has no basis within the presently enacted securities legal guidelines.”

Binance and Zhao’s legal professionals additionally accused the SEC of basically misinterpreting securities laws and the way they apply to digital belongings, difficult the SEC’s argument that digital belongings are securities.

Binance In Authorized Battle With SEC Since June

Binance.US, the trade’s US division, additionally filed for a dismissal of one other lawsuit, once more arguing that the SEC’s case has no basis underneath present securities legal guidelines, Bloomberg reported.

In each filings, the defendants additionally raised the “main questions doctrine,” which is a Supreme Court docket choice that instructed federal companies to attend for Congressional authority over financial or political issues.

The trade and its CEO have been in a authorized battle with the SEC since June when the authority sued them for mishandling buyer funds, deceptive traders and regulators and promoting unregistered securities.

The lawsuits have hammered the trade’s enterprise within the US and there’s been an exodus of high executives the world over. Binance.US has additionally laid off 30% of its workers in an effort to climate a droop in buying and selling quantity.