{"id":60437,"date":"2023-09-29T06:04:22","date_gmt":"2023-09-29T10:04:22","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=60437"},"modified":"2023-09-29T06:04:24","modified_gmt":"2023-09-29T10:04:24","slug":"circle-backs-binance-says-sec-cant-regulate-stablecoins","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/circle-backs-binance-says-sec-cant-regulate-stablecoins\/","title":{"rendered":"Circle Backs Binance, Says SEC Can\u2019t Regulate Stablecoins"},"content":{"rendered":"\n<p>Circle, the issuer of the <a href=\"https:\/\/coinscreed.com\/staging\/usdc-stablecoin-launches-on-polkadot-network.html\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">USDC stablecoin,<\/a> has filed an amicus curiae brief in support of Binance, the world\u2019s largest crypto exchange, in its ongoing lawsuit with the SEC. Circle argues that stablecoins are not securities and should not be regulated as such by the SEC.<\/p>\n\n\n\n<figure class=\"wp-block-image aligncenter size-large\"><img fetchpriority=\"high\" decoding=\"async\" width=\"1024\" height=\"536\" src=\"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2023\/09\/binance-x-sec-1024x536.webp\" alt=\"Circle Backs Binance, Says SEC Can\u2019t Regulate Stablecoins\" class=\"wp-image-60445\" srcset=\"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2023\/09\/binance-x-sec-1024x536.webp 1024w, https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2023\/09\/binance-x-sec-300x157.webp 300w, https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2023\/09\/binance-x-sec-768x402.webp 768w, https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2023\/09\/binance-x-sec-18x9.webp 18w, https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2023\/09\/binance-x-sec-750x393.webp 750w, https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2023\/09\/binance-x-sec-1140x597.webp 1140w, https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2023\/09\/binance-x-sec.webp 1200w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p>An <a href=\"https:\/\/www.armstronglegal.com.au\/commercial-law\/national\/litigation\/amicus-curiae-friend-court\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">amicus curiae<span class=\"wpil-link-icon\" title=\"Link goes to external site.\" style=\"margin: 0 0 0 5px;\"><svg width=\"24\" height=\"24\" style=\"height:16px; width:16px; fill:#000000; stroke:#000000; display:inline-block;\" viewBox=\"0 0 24 24\" version=\"1.1\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" xmlns:svg=\"http:\/\/www.w3.org\/2000\/svg\"><g id=\"wpil-svg-outbound-7-icon-path\" fill=\"none\" clip-path=\"url(#clip0_31_188)\">\r\n                            <path d=\"M9.16724 14.8891L20.1672 3.88908\" stroke-linecap=\"round\"\/>\r\n                            <path d=\"M13.4497 3.53554L20.5208 3.53554L20.5208 10.6066\" stroke-linecap=\"round\" stroke-linejoin=\"round\"\/>\r\n                            <path d=\"M17.5 13.5L17.5 16.26C17.5 17.4179 17.5 17.9968 17.2675 18.4359C17.0799 18.7902 16.7902 19.0799 16.4359 19.2675C15.9968 19.5 15.4179 19.5 14.26 19.5L7.74 19.5C6.58213 19.5 6.0032 19.5 5.56414 19.2675C5.20983 19.0799 4.92007 18.7902 4.73247 18.4359C4.5 17.9968 4.5 17.4179 4.5 16.26L4.5 9.74C4.5 8.58213 4.5 8.0032 4.73247 7.56414C4.92007 7.20983 5.20982 6.92007 5.56414 6.73247C6.0032 6.5 6.58213 6.5 7.74 6.5L11 6.5\" stroke-linecap=\"round\"\/>\r\n                        <\/g>\r\n                        <defs>\r\n                            <clipPath id=\"clip0_31_188\">\r\n                                <rect fill=\"white\" height=\"24\" width=\"24\"\/>\r\n                            <\/clipPath>\r\n                        <\/defs><\/svg><\/span><\/a> brief can provide additional information, arguments, or insights that may help the court reach a decision.<\/p>\n\n\n\n<p>The <a href=\"https:\/\/coinscreed.com\/staging\/judge-approves-binances-new-attorney-amid-secs-secret-filing.html\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">SEC-Binance lawsuit<\/a> started in June 2021, when the SEC filed a complaint against Binance, its U.S. affiliate BAM Trading, and its founder Changpeng Zhao, also known as CZ. <\/p>\n\n\n\n<p>The SEC accuses Binance of violating various securities laws, such as:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Operating unregistered exchanges, broker-dealers, and clearing agencies; <\/li>\n\n\n\n<li>Misrepresenting trading controls and oversight on the Binance.US platform; <\/li>\n\n\n\n<li>And offering and selling unregistered securities, including Binance\u2019s own tokens, <a href=\"https:\/\/coinmarketcap.com\/currencies\/bnb\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">BNB<span class=\"wpil-link-icon\" title=\"Link goes to external site.\" style=\"margin: 0 0 0 5px;\"><svg width=\"24\" height=\"24\" style=\"height:16px; width:16px; fill:#000000; stroke:#000000; display:inline-block;\" viewBox=\"0 0 24 24\" version=\"1.1\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" xmlns:svg=\"http:\/\/www.w3.org\/2000\/svg\"><use href=\"#wpil-svg-outbound-7-icon-path\"><\/use><\/svg><\/span><\/a> and <a href=\"https:\/\/coinmarketcap.com\/currencies\/binance-usd\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">BUSD,<span class=\"wpil-link-icon\" title=\"Link goes to external site.\" style=\"margin: 0 0 0 5px;\"><svg width=\"24\" height=\"24\" style=\"height:16px; width:16px; fill:#000000; stroke:#000000; display:inline-block;\" viewBox=\"0 0 24 24\" version=\"1.1\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" xmlns:svg=\"http:\/\/www.w3.org\/2000\/svg\"><use href=\"#wpil-svg-outbound-7-icon-path\"><\/use><\/svg><\/span><\/a> as well as other cryptocurrencies like <a href=\"https:\/\/coinscreed.com\/staging\/sol-dilemma-will-ftx-sell-off-push-solana-to-18-or-6.html\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">SOL<\/a> and ADA.<\/li>\n<\/ul>\n\n\n\n<p><a href=\"https:\/\/coinscreed.com\/staging\/u-s-sec-alleges-binance-us-in-250m-suspicious-fund-transfers.html\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">The SEC<\/a> claims that Binance has been allowing U.S. customers to access its global platform, Binance.com, which offers more crypto assets and services than its U.S. platform, Binance.US, despite claiming otherwise. <\/p>\n\n\n\n<p>U.S. SEC also alleges that Binance has been secretly controlling Binance.US behind the scenes while misleading investors about its independence and compliance. <\/p>\n\n\n\n<p>Moreover, the SEC alleges that Binance has been mishandling customer funds and engaging in manipulative trading practices.<\/p>\n\n\n\n<p>Binance denies the SEC\u2019s allegations and argues that the SEC is overstepping its authority and trying to regulate digital assets without proper guidance or legislation. <\/p>\n\n\n\n<p>Binance recently filed a motion to dismiss the SEC\u2019s complaint, claiming that it has no merit and violates Binance\u2019s constitutional rights.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-circle-s-case-for-stablecoins-as-a-form-of-digital-money\">Circle\u2019s case for stablecoins as a form of digital money<\/h3>\n\n\n\n<p>In its amicus curiae brief, Circle argues that <a href=\"https:\/\/coinscreed.com\/staging\/the-role-of-stablecoins-in-the-crypto-market.html\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">stablecoins<\/a> are not securities and should not be subject to the same regulatory scrutiny as traditional securities. Circle bases its argument on two main points:<\/p>\n\n\n\n<p>First, Circle claims that users of stablecoins do not expect to make a profit from their standalone purchases. Instead, they use stablecoins as a medium of exchange or a store of value. <\/p>\n\n\n\n<p>Therefore, stablecoins do not meet the criteria of an investment contract, one of the securities categories under U.S. law.<\/p>\n\n\n\n<p>Second, Circle claims that the sale of an asset does not create an investment contract if the seller has no post-sale commitments or obligations. <\/p>\n\n\n\n<p>Circle cites decades of legal precedents that support this notion. Circle also asserts that it does not have any ongoing relationship or obligation with its USDC or <\/p>\n\n\n\n<h3 class=\"wp-block-heading\">BUSD holders after they purchase the stablecoins.<\/h3>\n\n\n\n<p><a href=\"https:\/\/twitter.com\/circle\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Circle<span class=\"wpil-link-icon\" title=\"Link goes to external site.\" style=\"margin: 0 0 0 5px;\"><svg width=\"24\" height=\"24\" style=\"height:16px; width:16px; fill:#000000; stroke:#000000; display:inline-block;\" viewBox=\"0 0 24 24\" version=\"1.1\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" xmlns:svg=\"http:\/\/www.w3.org\/2000\/svg\"><use href=\"#wpil-svg-outbound-7-icon-path\"><\/use><\/svg><\/span><\/a> concludes its brief by stating that stablecoins are an innovative and beneficial form of digital money that should not be stifled by excessive regulation. <\/p>\n\n\n\n<p>Circle urges the court to reject the SEC\u2019s attempt to classify stablecoins as securities and to uphold the principle of innovation and competition in the crypto industry.<\/p>\n\n\n\n<p>The USDC issuer is one of the leading issuers of stablecoins, and its USDC is one of the most widely used stablecoins in the crypto market, with a market capitalization of over <strong>$30 billion. <\/strong><\/p>\n\n\n\n<p>Circle also partners with Binance to issue BUSD, another popular stablecoin that is backed by the U.S. dollar.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Circle, the issuer of the USDC stablecoin, has filed an amicus curiae brief in support of Binance, the world\u2019s largest crypto exchange, in its ongoing lawsuit with the SEC. Circle argues that stablecoins are not securities and should not be regulated as such by the SEC. An amicus curiae brief can provide additional information, arguments, [&hellip;]<\/p>\n","protected":false},"author":44,"featured_media":60445,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[32],"tags":[16419,16427,1658,884,1531],"class_list":["post-60437","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto-exchange-news","tag-binance-vs-sec-2","tag-amicus-curiae","tag-circle","tag-regulations","tag-stablecoin"],"jetpack_featured_media_url":"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2023\/09\/binance-x-sec.webp","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/60437","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/users\/44"}],"replies":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/comments?post=60437"}],"version-history":[{"count":0,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/60437\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media\/60445"}],"wp:attachment":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media?parent=60437"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/categories?post=60437"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/tags?post=60437"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}