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On the 22nd, Binance had its first four-hour hearing with the U.S. Securities and Exchange Commission (SEC) in the Federal District Court for the District of Columbia. Binance sought the judge's dismissal of the SEC's lawsuit. The hearing featured intense arguments between both parties regarding whether cryptocurrencies fall under the SEC's regulatory jurisdiction, but the judge has not yet made any rulings.
Those following the cryptocurrency news are likely aware that in November of last year, Binance reached a settlement agreement with various U.S. authorities, including the Department of Justice, the Commodity Futures Trading Commission (CFTC), the Office of Foreign Assets Control (OFAC), and the Financial Crimes Enforcement Network (FinCEN). Binance admitted guilt and agreed to pay a $4.3 billion fine. However, no agreement was reached with the SEC, and the litigation between the two continues.
In June of the previous year, the SEC filed a lawsuit against Binance's parent company, Binance Holdings, Changpeng Zhao, Binance US, and others, bringing forth 13 charges, including operating an unregistered exchange, illegally offering and selling securities to U.S. investors, and mishandling customer funds. During the hearing on the 22nd, Binance attempted to dismiss the SEC's charges, but Judge Amy Berman Jackson questioned Binance's stance. She asked Binance's lawyer why they believed the SEC did not have the right to apply securities laws to cryptocurrencies.
Binance's lawyer responded that while the definition of securities laws is broad, there must be limiting factors; otherwise, everything, including real estate, could be considered securities. Unexpectedly, Judge Jackson seemed increasingly disappointed with Binance's defense, at one point requesting that Binance stop repeating its arguments (referring to the point that investment contracts only apply to those who sign actual contracts). She stated that scrutinizing each accused asset against the criteria of the Howey Test would waste a considerable amount of time. She even questioned whether Binance correctly interpreted the Howey Test regarding the definition of investment contracts.
The dispute between Binance and the SEC not only concerns the fate of the company but also has significant implications for the entire cryptocurrency industry. In its legal battle with the SEC, Binance is attempting to invoke the significant question doctrine, indicating that the SEC needs explicit congressional direction to broadly regulate the cryptocurrency market. However, Judge Jackson expressed that, while this case has an impact on the entire cryptocurrency industry, she is not inclined to apply the significant question doctrine. Similar to the judge's position in the SEC lawsuit against Coinbase, a final decision on whether to dismiss the case has not been made. |
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Post time 7-2-2024 12:30:52
Post time 15-2-2024 08:32:28