Crypto exchange Binance and its CEO Changpeng Zhao (CZ) have submitted a motion to dismiss the lawsuit brought against them by the U.S. Securities and Exchange Commission (SEC). Binance and CZ argue that the SEC’s lawsuit is not supported by the current securities laws and that the SEC is distorting these laws in an attempt to gain regulatory power over the cryptocurrency industry.
In their court filing, Binance and Zhao’s lawyers state that “The SEC’s claims against BHL [Binance Holdings Ltd.] and Mr. Zhao should be dismissed with prejudice.” They also argue that the SEC is misinterpreting the text of the securities laws by excluding the word “contract” from the phrase “investment contract.” The legal team further warns that the SEC is attempting to expand its jurisdiction globally, including transactions on foreign cryptocurrency platforms, contrary to previous supreme court rulings.
Additionally, Binance’s lawyers assert that the SEC failed to provide sufficient notice of its interpretation of the securities laws and that the complaint fails to establish personal jurisdiction over Zhao. The motion to dismiss also extends to BAM Trading Services and BAM Management US Holdings, which are affiliated with Binance. The SEC filed the lawsuit against Binance and CZ on June 5, accusing them of violating U.S. securities laws and identifying 12 crypto tokens as securities.
Keywords: Binance, SEC lawsuit, dismissal, securities laws, cryptocurrency, regulatory power, Changpeng Zhao, lawsuit motion, securities, jurisdiction, cryptocurrency industry.
Hashtags: #Binance #SEClawsuit #cryptocurrency #securitieslaws #ChangpengZhao #regulation
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