In the latest development, lawyers representing crypto exchange Binance and its founder Changpeng Zhao (CZ) have filed a motion to dismiss the SEC lawsuit. Last month, the US securities regulator amended the original complaint regarding the “crypto asset securities”, to which Binance responded on Monday.
Binance SEC Lawsuit: CZ Files Motion to Dismiss Complaint
In its recent court filing, crypto exchange Binance argued that the amended complaint against it only gives “lip service” to a previous ruling stating that crypto assets are not inherently securities.
The Binance filing also asserts that regulators fail to acknowledge the full implications of this ruling, specifically, that secondary market resales of these assets, made long after their initial distribution by developers, do not constitute securities transactions. The crypto 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”.
Furthermore, Binance slammed the SEC for failing to provide any regulatory clarity on digital assets. The crypto exchange argued that the agency didn’t provide any clear stand as to which crypto assets qualify to be 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,” the filing stated, highlighting the ambiguity in SEC’s regulatory approach, which has cost the crypto firms upwards of $400 million under the leadership of Gary Gensler.
Despite these regulatory hurdles, the crypto exchange has continued to expand its product suite in the market. Recently, it launched a crypto solution for wealth managers.
Crypto Exchange Announces $3 Million Relief Fund
In another development different from the SEC lawsuit, crypto exchange Binance has stepped forward to announce a $3 million relief fund for the devastating Spanish floods. Binance CEO Richard Teng made this announcement on the X platform.
We are deeply saddened by the devastating floods in the Valencia region of Spain.#Binance is donating $3M to the Spanish Red Cross to support relief efforts and help those in need.
Our thoughts are with everyone affected. ❤️https://t.co/RTHHcKKgTy
— Richard Teng (@_RichardTeng) November 5, 2024
The funding will support immediate relief efforts for communities affected by the recent natural disaster. Contributions from Binance Charity will empower the Spanish Red Cross to deploy essential resources to those in need. Javier García de la Torre, General Manager for Binance in Spain said:
“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.”
Bhushan Akolkar
Bhushan is a FinTech enthusiast with a keen understanding of financial markets. His interest in economics and finance has led him to focus on emerging Blockchain technology and cryptocurrency markets. He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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