Mediaboss Marketing

Binances arguments used in its motion to dismiss a lawsuit from the United States securities regulator relies on an incorrect legal analysis and have no basis in law, the regulator has argued.

In a Nov. 7 court filing the SEC rebuffed Binances earlier bid to toss the regulators suit saying no court has adopted Binances tortured interpretation of the law.

The SEC sued Binancein June alleging it, Binance.US and its founder Changpeng CZ Zhao sold unregistered securities and failed to register as an exchange in the United States.

Binance argued the SEC failed to introduce crypto guidelines, misinterpreted securities laws and applied them to crypto and called the suit an overstep of its authority.

In its latest rebuttal, the SEC claimed Binance never complied with federal securities laws which was a deliberate choice.

It added Binances arguments that compared crypto to supermarket items like oranges [...] are absurd and claimed the crypto exchanges crypto sales are investment contracts under the Howey test.

Related: SEC Inspector General says prohibition on crypto ownership hinders agency hiring

The regulator reiterated its claims the BNB (BNB) initial coin offering violated securities laws and Binance USD (BUSD) along with the yield-bearing staking, Vault and Earn programs are investment contracts.

It also rebuffed Binances argument that the suit violated the major questions doctrine a 2022 U.S. Supreme Court ruling saying Congress doesnt delegate authority to agencies, which other crypto firms have cited in their aim to push back on the SECs claimed authority.

The SEC claimed granting Binances dismissal request would dismantle decades of foundational precedent upon which the nations securities laws operate and in its place would be a rigid framework that upends the broad, flexible regime of the current laws.

Magazine: The truth behind Cubas Bitcoin revolution An on-the-ground report

Read the original:

Binance used 'tortured' interpretation of law in bid to toss suit, says SEC - Cointelegraph