Richard

Edge

<ul class="wp-block-list">
 <li>Binance’s legal team filed a motion to dismiss the SEC’s amended complaint.</li>
 <li>Previous court rulings support that crypto assets are not inherently securities.</li>
</ul>
Binance and its former CEO, Changpeng “CZ” Zhao, have filed a motion to dismiss the SEC’s amended complaint against them. The motion, submitted on Nov. 4, accuses the SEC of failing to provide clear regulatory standards for the crypto industry. Binance’s legal team contends that the SEC’s approach contradicts a prior court ruling that found crypto assets are not inherently securities.
The motion pointed out that the SEC’s latest <a href="https://storage.courtlistener.com/recap/gov.uscourts.dcd.256060/gov.uscourts.dcd.256060.285.0_14.pdf" rel="noopener noreferrer nofollow">filing </a>disregards this precedent. It stated that the SEC insists secondary market resales of crypto tokens are securities transactions, simply because some buyers might expect value appreciation. This, Binance’s lawyers argued, demonstrates the SEC’s unwillingness to establish coherent legal guidelines for determining which crypto transactions qualify as investment contracts.
The lawyers emphasized that the SEC’s amended complaint continues to classify almost all crypto transactions as securities. They noted the SEC’s inconsistency, citing its sudden decision to drop claims that transactions involving <a href="https://thenewscrypto.com/is-the-recent-whale-activity-signaling-trouble-for-ethereum/" rel="noopener noreferrer nofollow">Ethereum</a> constitute investment contracts. The legal team accused the regulator of arbitrarily choosing winners and losers in the crypto space, which they claim undermines market confidence.
<h3 class="wp-block-heading" id="h-ongoing-legal-challenges-for-binance">Ongoing Legal Challenges for Binance</h3>
In June 2023, the SEC launched a<a href="https://www.sec.gov/newsroom/press-releases/2023-101" rel="noopener noreferrer nofollow"> lawsuit</a> against Binance, Binance.US, and CZ. The charges included operating unregistered exchanges, broker-dealers, and clearing agencies. While the SEC won a partial victory, Judge Amy Berman Jackson ruled against the agency on significant points. The judge dismissed allegations that Binance’s BNB secondary market sales and BUSD-related programs were investment contracts. The latest amended complaint aims to revive some of those dismissed claims.
Binance’s lawyers criticized the SEC’s unwillingness to clarify what constitutes an investment contract to courts, litigants, and market participants. They argue that the SEC’s inconsistent stance causes uncertainty and hampers fair regulatory practices.
The crypto exchange has faced numerous<a href="https://thenewscrypto.com/uaes-rak-dao-to-launch-legal-framework-for-daos/" rel="noopener noreferrer nofollow"> legal</a> issues, including a separate case with the Department of Justice (DOJ). In November 2023, Binance admitted to anti-money laundering violations and was fined $4.3 billion. CZ served four months in U.S. prison but has since been released. Despite these challenges, Binance has made efforts to navigate regulatory hurdles, especially under new CEO Richard Teng, who took over leadership after CZ’s guilty plea.
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Binance and CZ Seeks Dismissal of SEC’s Amended Complaint

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