Binance, alongside its founder Changpeng Zhao (CZ), filed a new motion on November 4, 2024, seeking to dismiss the U.S. Securities and Exchange Commission’s (SEC) amended complaint. In their response, Binance’s legal team argued that the SEC’s lack of clarity and broad interpretation of securities laws create regulatory uncertainty, harming the digital assets industry.
The SEC’s amended complaint continues to frame most crypto transactions, including secondary market trades, as securities transactions. Binance’s lawyers countered this, pointing to inconsistencies in SEC enforcement and a lack of clear standards that crypto market participants can follow. This regulatory uncertainty, according to Binance, is impeding industry growth and innovation.
The motion further highlights a recent court ruling dismissing claims by the SEC that Binance’s BNB token was illegally traded on secondary markets. Additionally, the defense argued that the SEC’s classification of crypto assets as securities in secondary market resales contradicts previous judicial interpretations, which exempted certain assets from securities regulations after their initial distribution.
This legal battle follows months of regulatory scrutiny and an earlier case where Binance agreed to a $4.3 billion settlement with the U.S. Department of Justice over unrelated charges. Legal experts believe this latest pushback could set an important precedent for how securities laws are applied to crypto in the U.S., potentially influencing future regulation for the digital asset industry.
