Federal Judge Calls for Court Review on Whether Crypto Is Considered a Security in Binance v. SEC Lawsuit
Binance and the SEC Lawsuit Take an Unexpected Turn
In a surprising twist, Amy Berman Jackson, the judge presiding over the SEC v. Binance lawsuit, has requested a court review to determine whether digital assets can be considered securities. Binance’s lawyer staunchly denies the SEC’s allegations that digital assets fall under the definition of securities.
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An Update on the Legal Battle
As of January 18, the SEC v. Binance lawsuit, which was initiated in June 2023, is still ongoing. The SEC is diligently trying to substantiate their claims against Binance. Throughout the duration of this lawsuit, Judge Jackson has been carefully considering the arguments presented by both parties. She is now specifically interested in exploring whether digital assets should be classified as securities and whether the SEC’s accusations against cryptocurrencies hold any merit.
The SEC Under Scrutiny
Judge Jackson, of the District Court for the District of Columbia, has announced that she will be hearing arguments from both sides regarding the SEC’s treatment of cryptocurrencies within the existing regulatory and legal frameworks. Binance.US’s legal representatives will be given an opportunity to address the question of whether a digital asset can be considered a security indefinitely.
“The Court intends to hear arguments on [whether an investment contract must involve a contractual undertaking and] whether the SEC ‘misunderstands the meaning of “scheme” in Howey,’ from one defense attorney only,” stated Amy Berman Jackson.
Could Binance Secure a Dismissal?
Indeed, the rumors are true! Binance is actively pursuing the dismissal of the ongoing lawsuit and is set to appear in court in Washington today. This bold move demonstrates Binance’s determination to challenge the U.S. SEC. Crypto industry experts have been eagerly anticipating the outcome of this legal saga. Binance was initially accused of engaging in fraudulent activities and misleading investors about its market volume in June of the previous year, which ultimately led to the lawsuit.
The year 2023 proved to be a challenging one for Binance, as the company encountered numerous obstacles and setbacks. The most disheartening setback was the departure of Chanpeng Zhao and the subsequent $4 billion settlement with the CFTC.