Lawyers for Binance, CZ file a motion to dismiss amendment in SEC lawsuit, citing a failure to recognize that crypto assets are not securities.
In a recent move, lawyers representing Binance and its founder, Changpeng Zhao (CZ), have submitted a motion to dismiss the lawsuit filed by the U.S. Securities and Exchange Commission (SEC).
This follows the SEC’s recent amendment to its initial complaint related to “crypto asset securities,” to which Binance responded on Monday.
Binance Seeks Dismissal of SEC Complaint Filed by CZ
Binance’s latest court filing contends that the revised complaint offers only “lip service” to a previous ruling, which asserted that crypto assets are not inherently classified as securities.
Binance further argues that the SEC has not fully acknowledged the ruling’s implications, especially regarding secondary market resales of these assets.
These resales, taking place well after their initial release by developers, should not be considered securities transactions. The exchange noted:
“Instead, the SEC’s Amended Complaint continues to insist that virtually all transactions involving crypto assets—including blind secondary market resales of tokens—are securities transactions because some buyers might hope the assets will increase in value.”
Binance also criticized the SEC for a lack of regulatory guidance on digital assets.
According to Binance, the agency has failed to define clear criteria for determining when crypto assets might qualify as investment contracts.
“The SEC still refuses to articulate any standard for courts, litigants, or market participants to know which crypto-asset transactions qualify as investment contracts, and which do not,” Binance’s filing stated, emphasizing that the SEC’s unclear stance has cost crypto firms over $400 million under Gary Gensler’s leadership.
Despite regulatory challenges, Binance continues to grow its product offerings, recently launching a crypto solution for wealth managers.
Binance’s $3 Million Flood Relief Fund
In an unrelated initiative, Binance has announced a $3 million relief fund for communities affected by the severe floods in Spain. Binance CEO Richard Teng shared this news on the platform X.
This funding will aid the Spanish Red Cross in providing immediate relief to flood-impacted communities in Valencia. Javier García de la Torre, General Manager for Binance in Spain, stated:
“Our hearts go out to all those affected by the devastating floods in Valencia. At Binance, we are committed to leveraging our resources to provide critical support during these challenging times. Through our donation to the Spanish Red Cross, we aim to bring relief and assistance to the people who need it most. We stand together with the community in Valencia, committed to helping rebuild and recover.”
