The U.S. Securities and Exchange Commission (SEC) is intensifying its legal action against cryptocurrency exchange Binance and its American counterpart, Binance.US.
The SEC alleges violations of security laws and fraudulent activities by both entities. The regulatory authority has moved to challenge the dismissal motions filed by Binance and CEO Changpeng “CZ” Zhao and stands firm in its pursuit of justice.
SEC Opposes Dismissal Motion
In this latest filing, the SEC opposes the dismissal motion, officially recorded on November 7. Meanwhile, the SEC, in its official submission, is urging Judge Amy Berman Jackson to support their cause. The SEC vehemently argues that Binance.US’s request to dismiss the lawsuit should be rejected.
The SEC’s case revolves around alleged violations of securities regulations, with claims of unregistered cryptocurrency securities. Now, the SEC asserts that these actions fall under the purview of existing securities laws, and its opposition is rooted in its commitment to safeguarding investor interests.
The SEC also takes issue with Binance.US’s lack of cooperation in adhering to the previous consent order, leading to disputes related to document discovery and deposition.
The legal proceedings are far from over, as a pivotal hearing is scheduled for January 18, 2024, during which Judge Jackson will assess the motion to dismiss the SEC’s complaints against Binance, Binance.US, and CEO CZ.
This hearing is essential in determining the future course of action in this legal battle.
Crypto Market’s Response
The SEC’s recent challenges and losses in the Ripple lawsuit have had a noticeable impact on the regulatory body’s credibility. Several federal judges have criticized the SEC’s approach, deeming it “irrational” and “arbitrary and capricious.”
In the cryptocurrency markets, these legal developments have triggered notable market responses. The market is experiencing an upswing, primarily fueled by the anticipation of spot Bitcoin ETF approval.
This optimism is reflected in the performance of Binance’s native token, BNB, which has witnessed a remarkable surge of over 10% within a week and is presently trading at $246.
These legal fights and the market’s reaction show a power struggle between the rules and the crypto world