Binance and CZ want to dismiss SEC complaint
Cryptocurrency exchange Binance and its CEO Changpeng Zhao (CZ) have filed to dismiss the U.S. Securities and Exchange Commission (SEC) complaint. “It is clear that the SEC's complaint has no basis in the securities laws currently in force,” they argued, asserting that “the SEC is twisting the text of the securities laws to arrogate to itself regulatory powers over the crypto industry.”
Binance and CZ request dismissal of SEC complaint
The cryptocurrency exchange and its CEO filed a joint request on Thursday to dismiss the complaint from the U.S. Securities and Exchange Commission (SEC).
According to court documents, lawyers for Binance and Zhao wrote: “The SEC's charges against BHL and Mr. Zhao should be dismissed with bias.” They add
It is clear that the SEC's complaint has no basis in current securities laws.
“The SEC distorts the text of the securities laws by removing the word ‘contract' from the legal term ‘investment contract,'” they said.
Additionally, lawyers for the cryptocurrency exchange and its CEO warned: “The SEC is also attempting to expand its jurisdiction globally to include transactions on foreign cryptocurrency exchanges, which is contrary to SEC case law. Supreme Court that the authority's regulatory powers end at the U.S. border. They noted that “as the SEC does not have the authority to do so, BHL and Mr. Zhao politely request that the complaint be dismissed.”
Binance's legal team also argued
The entire complaint fails because the SEC did not provide sufficient notice of its new interpretation of the securities laws.
“Binance US (BAM Trading Services) and BAM Management US Holdings also request the dismissal of the SEC's accusations against them. On June 5, the SEC filed a complaint against the companies Binance and CZ. In this complaint, the Commission of securities identified 12 cryptocurrency tokens as securities.
Do you think it is appropriate for the court to dismiss the SEC's complaint against Binance and CZ? Let us know in the comments below.