Attorneys for Binance and its CEO Changpeng Zhao (CZ) have filed a motion to dismiss the amended SEC lawsuit, arguing that the SEC fails to acknowledge that crypto assets do not inherently qualify as securities.
Key Points:
- Binance criticized the SEC for lacking clear standards on what qualifies crypto assets as investment contracts, which has led to substantial financial burdens for crypto firms.
- Separately, Binance launched a $3 million relief fund to support communities impacted by severe flooding in Spain.
In a recent development, lawyers for Binance and CZ have moved to dismiss the SEC’s amended lawsuit. Last month, the U.S. securities regulator updated its complaint concerning “crypto asset securities,” to which Binance responded on Monday.
CZ and Binance’s Motion to Dismiss SEC Complaint
In the latest court filing, Binance argued that the SEC’s amended complaint only “pays lip service” to a previous court ruling, which indicated that crypto assets are not automatically securities. Binance further contended that the SEC overlooks the implications of this decision, particularly that secondary market resales of tokens do not qualify as securities transactions. Binance stated:
“Instead, the SEC’s amended complaint persists in labeling virtually all crypto transactions as securities transactions simply because some buyers might expect these assets to appreciate in value.”
The filing also criticized the SEC for not providing regulatory clarity, pointing out that it has yet to specify which crypto transactions count as investment contracts. This ambiguity has cost the crypto industry over $400 million, according to Binance.
Despite regulatory challenges, Binance has expanded its product offerings, including a new crypto solution for wealth managers.
Binance Announces $3 Million Flood Relief Fund
In an unrelated initiative, Binance has pledged $3 million to assist Spanish communities affected by severe flooding. Binance’s CEO Richard Teng announced that Binance Charity would collaborate with the Spanish Red Cross to support immediate relief efforts in the hardest-hit areas.
Javier García de la Torre, Binance’s General Manager in Spain, emphasized the company’s commitment to providing critical support to affected communities, saying, “Through our donation to the Spanish Red Cross, we aim to bring relief and assistance to the people who need it most.”
